Zoetis Again Slashes FY22 Outlook As Q3 Results Miss Estimates; Stock Down 11%

(RTTNews) - While reporting financial results for the third quarter on Thursday, animal health company Zoetis Inc. (ZTS) again slashed its earnings, adjusted earnings and revenue guidance for the full year 2022, to reflect lower than expected sales due to continued supply constraints, veterinary workforce challenges, as well as the negative impact of recent changes to foreign exchange rates.

For fiscal 2022, the company now projects earnings in a range of $4.51 to $4.59 per share and adjusted earnings in a range of $4.83 to $4.90 per share on revenues between $8.00 billion and $8.075 billion.

Previously, the company expected earnings in the range of $4.65 to $4.75 per share and adjusted earnings in the range of $4.97 to $5.05 per share on revenues between $8.225 billion and $8.325 billion.

On average, 14 analysts polled by Thomson Reuters expect the company to report earnings of $5.00 per share on revenues of $8.26 billion for the year. Analysts' estimates typically exclude special items.

For the third quarter, the company reported net income attributable to Zoetis of $529 million or $1.13 per share, up from $552 million or $1.16 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter were $1.21 per share, compared to $1.25 per share in the year-ago quarter.

Revenue for the quarter edged up 1 percent to $2.00 billion from $1.99 billion in the same quarter last year. On an operational basis, revenue increased 5 percent, excluding the impact of foreign currency.

The Street was looking for earnings of $1.24 per share on revenues of $2.08 billion for the quarter.

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