Zoetis CEO on Q2 results: “trends in companion animal are durable”

Zoetis Inc. (NYSE: ZTS) reported its financial results for the second quarter on Thursday that beat Wall Street estimates. The stock was largely unbothered in after-hours trading despite raised guidance for the full year.

Second-quarter financial performance and full-year guidance

Zoetis said its net income printed at $512 million in Q2 ($1.07 per share) versus the year-ago figure of $377 million (79 cents per share). Adjusted for one-time items, it earned $1.19 per share. The world's largest producer of medicine and vaccinations for pets and livestock generated $1.95 billion of revenue that represents an annualised growth of 25.8%.

According to FactSet, experts had forecast $1.83 billion of revenue and $1.08 of adjusted EPS. For fiscal 2021, Zoetis now forecasts its adjusted per-share earnings to fall in the range of $4.47 to $4.55. It expects up to $7.70 billion of revenue this year. The earnings report comes a day after Zoetis said it will acquire Jurox.

Shares of the company tanked to a low of $144 in early March but have since recovered about 40%. On Wednesday, the stock hit a record $206.

Highlights from CEO Kristin Peck’s interview with CNBC’s “Closing Bell”

The pandemic was a blessing in disguise for Zoetis as it restricted people to their homes, making them spend more time with their pets and find companionship in them. But CEO Kristin Peck is confident that the trend will continue even after the pandemic. On CNBC’s “Closing Bell”, she said:

According to Peck, while data doesn’t suggest a commercial need for a COVID-19 vaccine for cats and dogs, one is needed for zoo animals for which Zoetis worked with the USDA to secure EUA and is donating ample doses of vaccine to 70 zoos around the United States.