Zoetis Inc (NYSE:ZTS) stock fell 3.59% (As on February 14, 11:21:14 AM UTC-4, Source: Google Finance) after the company beats the earning expectations for the fourth quarter of FY 24. Adjusted net income for the fourth quarter of 2024 was $632 million, an increase of 11% and 13%, respectively, on a reported basis, and an increase of 9% and 12%, respectively, on an operational basis.  Zoetis completed the divestiture of its medicated feed additive (MFA) product portfolio, certain water soluble products and related assets.

Moreover, the revenue in the U.S. segment was $1.3 billion, an increase of 4% compared with the fourth quarter of 2023. Sales of companion animal products increased 7%, driven by the company’s flea, tick and heartworm combination product for dogs, Simparica Trio, as well as the key dermatology portfolio, including Apoquel and Cytopoint. Also contributing to growth was the company’s monoclonal antibody (mAb) products for osteoarthritis (OA) pain, Librela for dogs and Solensia for cats. Growth in the quarter was partially offset by the impact of initial stocking of Librela and Apoquel Chewable products due to launches in the same quarter of the prior year. Sales of livestock products declined 8% in the quarter. The decline was a result of the divestiture of the MFA product portfolio, certain water soluble products and related assets, which more than offset growth in the ceftiofur and Draxxin lines of injectable antibiotic products. Revenue in the International segment was $1.0 billion, reflecting a 6% increase on a reported basis and an increase of 10% operationally compared with the fourth quarter of 2023. Sales of companion animal products grew 11% on a reported basis and 13% operationally. Growth in the quarter was driven by the company’s key dermatology products, Apoquel and Cytopoint, parasiticides products, Simparica and Simparica Trio, as well as the company’s monoclonal antibody products for OA pain, Librela and Solensia. Sales of livestock products were flat on a reported basis and grew 6% operationally. Growth across the company’s cattle and poultry products was driven largely by price increases across the broader international segment

ZTS in the fourth quarter of FY 24 has reported the adjusted earnings per share of $1.40, beating the analysts’ estimates for the adjusted earnings per share of $1.38. The company had reported the adjusted revenue growth of 5 percent to $2.32 billion in the fourth quarter of FY 24, which is inline with the analysts’ estimates for revenue of $2.32 billion.

For fiscal 2025, the company expects revenue tobe between $9.225 billion to $9.375 billion (operational growth of 2% to 4%; organic operational growth of 6% to 8%), Adjusted net income to be between $2.700 billion to $2.750 billion (operational growth of 2% to 4%; organic operational growth of 6% to 8%) and Adjusted diluted EPS to be between $6.00 to $6.10.