Zoetis hacked more than $200 million off its full-year outlook on Thursday, and investors hammered ZTS stock to a two-year low.
For the year, the animal-health giant now expects $8 billion to $8.075 billion in sales. Three months ago, Zoetis expected at least $8.225 billion in sales.
"While we remain confident in the strength and growth drivers of our business, we are lowering 2022 guidance to reflect lower-than-expected sales in the second half of the year related to continued supply constraints, veterinary workforce challenges and recent changes to foreign exchange rates," Chief Executive Kristin Peck said in a written statement.
On today's stock market, ZTS stock plunged 11% to 131.14. Earlier, shares hit their lowest point since May 2020.
ZTS Stock: Earnings Decline More Than Expected
During the September quarter, adjusted Zoetis earnings declined more than 3% to $1.21 a share. That lagged ZTS stock analysts' call for $1.24. Sales inched 1% higher to $2 billion, but that was below expectations for $2.08 billion, according to FactSet.
Across geographies, sales from Zoetis' livestock segment fell. Overall, those sales declined 8% to $708 million. Pet sales continued to climb, rising 6% globally to $1.27 billion.
Zoetis noted it's facing a generic versions of Draxxin and Zoamix. Draxxin treats a respiratory illness in cattle while Zoamix prevents and treats some parasites in chickens. Internationally, sales of products for pigs declined due to supply issues.
In addition to a lower sales outlook, Zoetis also trimmed its earnings outlook to $4.83 to $4.90 a share, on an adjusted basis. ZTS stock analysts expected $4.99 per share. Three months ago, Zoetis predicted $4.97 to $5.05 per share.
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