(Reuters) – Zoetis raised its annual profit and revenue forecasts on Monday on strong demand for its medicines and vaccines for animals.
Shares of the animal healthcare company rose nearly 3% in premarket trading after Zoetis also beat Wall Street’s estimates for third-quarter results.
Zoetis posted revenue of $2.39 billion in the reported quarter, compared with analysts’ average estimate of $2.29 billion, according to data compiled by LSEG.
The beat was helped by a 14% revenue jump in the companion animal segment to $1.6 billion, driven by strong sales of osteoarthritis pain medications — Librela and Solensia.
Rival Merck also reported 17% sales growth in its companion animal health business in the third quarter, helped by its new products.
Zoetis posted an adjusted profit of $1.58 per share for the quarter ended Sept. 30, above analysts’ estimate of $1.46.
The New Jersey-based company now expects 2024 adjusted profit between $5.86 and $5.92 per share, compared with its previous forecast of $5.78 to $5.88.
It raised the annual revenue forecast to $9.2 billion to $9.3 billion, up from $9.1 billion to $9.25 billion previously.
(Reporting by Puyaan Singh in Bengaluru; Editing by Shinjini Ganguli)
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