Zoetis Inc (NYSE:ZTS) stock rose 0.043% (As on November 3, 11:45:42 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the third quarter of FY 23. Adjusted net income for the third quarter of 2023 was $629 million, an increase of 11%, on a reported basis, and an increase of 13% on an operational basis. Adjusted net income for the third quarter of 2023 excludes the net impact of $33 million for purchase accounting adjustments, acquisition-related costs and certain significant items. The company is on track to achieve the full-year operational guidance and have narrowed it around the mid-point of the range. The company is executing well on drivers where they have more control, like the successful launch of Librela in the U.S., while also mitigating the downside of macroeconomic declines in China

Moreover, the revenue in the U.S. segment was $1.174 billion, an increase of 8% compared with the third quarter of 2022. Sales of companion animal products increased 11%, driven by the company’s key dermatology portfolio, including Apoquel and Cytopoint, as well as the company’s parasiticide product Simparica Trio. Also contributing to growth in the quarter was Solensia, a monoclonal antibody for osteoarthritis pain in cats, and the company’s diagnostics portfolio of Vetscan products. Revenue in the International segment was $956 million, reflecting an increase of 8% on both a reported and operational basis, compared with the third quarter of 2022. Sales of companion animal products grew 12% on both a reported and operational basis, despite declines in China. Growth in the quarter was driven by the company’s monoclonal antibody products for osteoarthritis pain, Librela for dogs and Solensia for cats, as well as its key dermatology products, Apoquel and Cytopoint.

ZTS in the third quarter of FY 23 has reported the adjusted earnings per share of $1.29, missing the analysts’ estimates for the adjusted earnings per share of $1.36. The company had reported the adjusted revenue growth of 7 percent to $2.15 billion in the third quarter of FY 23, missing the analysts’ estimates for revenue of $2.18 billion.

Zoetis Inc sees FY 2023 EPS to be in the range of $5.38-$5.43 versus the analyst consensus of $5.43. Zoetis Inc sees FY 2023 revenue to be in the range of $8.48 billion -$8.55 billion versus the analyst consensus of $8.59 billion (narrows operational growth to a range of 6.5% to 7.5%).