By Dhirendra Tripathi
Investing.com – Zoetis stock (NYSE:ZTS) rose 1.5% Tuesday after the animal health company said 2022 revenue could grow as much as 9%, pinning its hopes on strength in petcare and expansion of its diagnostics portfolio internationally.
The company expects significant growth in both livestock and companion animal product sales in emerging markets, including China and Brazil.
Zoetis is projecting its current-year revenue to come in between $8.32 billion and $8.47 billion. Adjusted profit per share is seen at $5.15 at midpoint of its guidance range.
The company’s outlook comes in after fourth-quarter revenue grew 9% to $2 billion, with sales in U.S. accounting for just over half of it.
Sales of companion animal products in U.S. were up 20%, driven by growth across the parasiticides portfolio, including Simparica Trio for dogs, a once-a-month chewable.
Sales of cattle products declined in U.S. because of lower-priced generic products and continued weakness in beef and dairy markets. Generic competition was also felt in the company’s poultry portfolio. Sales of swine products fell due to pricing pressure on anti-infectives and vaccines.
In the international markets, swine products sales fell in the quarter as a result of declining pork prices because of increased supply in China.
The company said its first injectable monoclonal antibody to control pain due to osteoarthritis in cats has got approvals in U.S., the EU, the U.K., Canada and Switzerland.
In the recent quarter, Zoetis launched new digital and data analytic solutions to help its U.S. cattle producer customers improve the productivity of their farms and ranches. It has also developed a new Cloud-based management software to help cow-calf producers track and manage herd inventory.
Zoetis’ adjusted profit per share in the fourth quarter was $1 and beat estimates.