Zoetis Inc (ZTS) Reports 7% Revenue Growth and 13% Increase in Net Income in Q3 2023
Zoetis Inc (NYSE:ZTS) reports Q3 2023 revenue of $2.2 billion, a 7% increase compared to Q3 2022.
Net income for Q3 2023 was $596 million, a 13% increase on a reported basis.
Adjusted net income for Q3 2023 was $629 million, an 11% increase on a reported basis.
Company updates full year 2023 revenue guidance range to $8.475 - $8.550 billion due to the impact of foreign exchange rates.
On November 2, 2023, Zoetis Inc (NYSE:ZTS) released its financial results for the third quarter of 2023. The company reported a revenue of $2.2 billion, marking a 7% increase compared to the third quarter of 2022. On an operational basis, the revenue for Q3 2023 increased by 8%, excluding the impact of foreign currency. The net income for the third quarter of 2023 was $596 million, or $1.29 per diluted share, an increase of 13% and 14%, respectively, on a reported basis.
Financial Highlights
Zoetis Inc (NYSE:ZTS) reported an adjusted net income of $629 million, or $1.36 per diluted share, for the third quarter of 2023. This represents an increase of 11% and 12%, respectively, on a reported basis, and an increase of 13% and 15%, respectively, on an operational basis. The adjusted net income for Q3 2023 excludes the net impact of $33 million for purchase accounting adjustments, acquisition-related costs, and certain significant items.
Executive Commentary
Today we reported strong third quarter results of 8% operational growth in revenue and 13% operational growth in adjusted net income, based on our diverse portfolio across markets and species," said Kristin Peck, Chief Executive Officer of Zoetis.
Quarterly Highlights
In the third quarter of 2023, revenue in the U.S. segment was $1.174 billion, an increase of 8% compared with the third quarter of 2022. The International segment reported a revenue of $956 million, reflecting an increase of 8% on both a reported and operational basis, compared with the third quarter of 2022.
Investments in Growth
Zoetis continues to grow key product franchises through additional claim extensions in major markets. In the third quarter, Simparica Trio, the companys triple combination oral parasiticide for dogs, received approval in Australia and Canada for claims related to efficacy against sarcoptic and demodectic manges.
Financial Guidance
Zoetis is updating its full year reported 2023 guidance due to foreign exchange rates. The company now expects revenue to be between $8.475 billion to $8.550 billion, with operational growth in the range of 6.5% to 7.5%.
Explore the complete 8-K earnings release (here) from Zoetis Inc for further details.
This article first appeared on GuruFocus.
