Zoetis Inc (NYSE:ZTS) in the fourth quarter of FY 17 has posted better than expected results leading to the stock rise of over 3.3% (As of 12:54PM EST on Feb 15th, 2018; Source: Google finance). For the fourth quarter, the net income is of $81 million compared with $154 million in the fourth quarter of 2016.
ZTS in the fourth quarter of FY 17 has reported the adjusted earnings per share of 69 cents, beating the analysts’ estimates for the adjusted earnings per share of 66 cents as per Zacks Investment Research. The company had reported the adjusted revenue growth of 14 percent to $1.46 billion in the fourth quarter of FY 17, beating the analysts’ estimates for revenue of $1.4 billion. In 2017, ZTS has become the first animal health company to deliver more than $5 billion in revenue.
Moreover, in the fourth quarter, the revenue in the U.S. segment grew 13% to $712 million compared with the fourth quarter of 2016. The revenue in the International segment grew 16% to $740 million on a reported basis and 13% operationally compared with the fourth quarter of 2016.
Additionally, ZTS has expanded the availability of its oral flea and tick medication, Simparica, into new markets, with additional approvals in Chile, Panama, the Philippines and Switzerland. The product has also received approval in the European Union for the treatment of two additional types of skin mites. Further, ZTS Vanguard Rapid Resp intranasal vaccine line has been granted a one-year duration of immunity claim for canine adenovirus type 2 and canine parainfluenza virus, in addition to the product’s prior one-year duration of immunity claim for Bordatella bronchiseptica. In the U.S., ZTS has enhanced its medicated feed additives portfolio with an expanded claim for Lincomix (lincomycin hydrochloride), which is a popular feed medication.
For FY 18, ZTS expects earnings to be in the range of $2.96 to $3.10 per share, and revenue is expected to be in the range of $5.68 billion to $5.8 billion. Therefore, for FY 18, the company expects the operational growth of 5% to 7% in revenue and 20% to 26% in adjusted net income.