Zoetis stock surged Tuesday, retaking both its 50-day and 200-day moving averages, on strong second-quarter sales for companion and livestock sales, and after hiking its outlook for 2024.
The company now expects full-year sales to come in at $9.1 billion to $9.25 billion. That topped the Street's call for $9.14 billion, according to FactSet.
William Blair analyst Brandon Vazquez noted the guidance boost, up 0.5% at the midpoint, was lower than the magnitude of the second-quarter beat. June-quarter sales topped expectations by 2%. But that didn't stop Zoetis stock, which zoomed ahead 6%, closing at 185.29.
Shares are consolidating with a buy point at 201.92, according to MarketSurge.
Zoetis Stock Climbs On Sales Beat
Across all products, Zoetis' sales climbed 8% to $2.36 billion, ahead of forecasts for $2.31 billion. The animal health company also posted adjusted earnings of $1.56 per share, up 11%. Earnings beat analysts' call for $1.49 a share.
Notably, both livestock and companion animal sales beat expectations. Livestock sales grew 3% to $694 million, topping the Street's view for $686.6 million. Revenue from products for pets jumped 11% to $1.65 billion. Analysts projected $1.62 billion from the latter segment.
In the livestock segment, strength came from soft prior-year comparisons from the U.S. and price increases in international markets, Vazquez said.
The pet segment benefited from growth across key franchises, including Simparica Trio, Apoquel, Cytopoint, Librela and Solensia. Simparica is an anti-parasitic, while Apoquel and Cytopoint treat itching conditions. Librela and Solensia are osteoarthritis drugs.
Vazquez kept his outperform rating on Zoetis stock.
"Zoetis continues to benefit from the breadth of its portfolio innovation, and we think this momentum should continue through 2024-plus aided by some key areas like companion animal pain therapy, dermatology and parasiticides," he said in a report.
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