Fluffy's drugmaker Zoetis offered a mixed second-quarter report Thursday, as the producer of animal medications missed on earnings but beat sales views. ZTS stock sank in early action.
During the June quarter, Zoetis earned $1.20 per share, minus some items, on $2.05 billon in sales. Earnings inched ahead 1% year over year, but missed forecasts by a penny. Sales grew 5% and beat expectations for $2.03 billion, according to FactSet.
Sales of livestock products continued their downward trajectory. These products treat cattle, swine, poultry, fish and sheep. In the U.S., livestock sales declined 7%. Abroad, sales fell 3%. In both cases, that continued a first-quarter trend.
Zoetis noted Draxxin and Zoamix — treatments for cattle and poultry, respectively — are facing generics in the U.S. Further, the U.S. beef and dairy markets remain weak. Swine products grew in the U.S., but fell internationally.
On today's stock market, ZTS stock dipped 3.3% to close at 174.31.
ZTS Stock: Pet Products Grow
Pet products continued to be a bright spot for Zoetis. Treatments for companion animals rose 11% to $1.37 billion across all geographies. In the U.S., sales climbed 13%. Internationally, sales jumped 8%. Dogs and cats drove the growth, increasing 12%, while sales of treatments for horses fell 7%.
Meanwhile, all livestock sales dipped 4% to $668 million. Zoetis also reported a 10% decline for its contract manufacturing and human health division. That business brought in just $18 million.
For the year, Zoetis cut its outlook. Now, the company expects to earn $4.97-$5.05 per share, down 3 cents at the midpoint from its prior guidance. Zoetis also called for $8.225 billion to $8.325 billion in sales, lower by $25 million at the midpoint.
ZTS stock analysts had predicted adjusted profit of $5.05 a share and $8.26 billion in sales.
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