RPT-Pet products maker Zoetis sees annual profit below estimates on weak demand
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Feb 13 (Reuters) - Pet products maker Zoetis forecast full-year profit below analysts' expectations after missing quarterly profit estimates on Tuesday, pressured by sluggish demand as inflation-weary pet owners curtailed their spending.
The company's shares fell 4.4% in premarket trading after it forecast annual profit in the range of $5.74 to $5.84 per share, below analysts’ average estimate of $5.98 per share.
On an adjusted basis, the company reported a fourth-quarter profit of $1.24 per share, missing analysts' estimates of $1.32 per share, according to LSEG data.
A staffing shortage across healthcare providers, including veterinary hospitals, and high inflation have impacted demand for certain animal products.
The forecast contrasts with peer IDEXX Laboratories which expects annual sales above estimates, banking on higher demand for its companion animal health diagnostic services this year.
Sales from Zoetis' companion animal unit, through which it sells vaccines and medicines for dogs, cats and horses, were at $1.45 billion for the fourth quarter, missing estimates of $1.52 billion. However, it posted quarterly revenue of $2.21 billion, beating analysts' estimate of $2.19 billion.
The company deals with vaccines, medicines as well as diagnostic solutions for animals and markets them in over 40 countries. (Reporting by Sneha S K; Editing by Ravi Prakash Kumar)
