Zoetis Stock Faces Premarket Drop After Earnings Report

Zoetis Inc. (ZTS) is experiencing a notable premarket decline of 8.0%, with shares dropping $13.88 to a current price of $160.00. This movement comes in the wake of the company's recently released fourth quarter and full year 2024 financial results.

In its earnings report, Zoetis announced a revenue of $2.3 billion for the fourth quarter, reflecting a 5% increase compared to the same period last year. However, the company also reported that net income rose to $581 million, or $1.29 per diluted share, which was an 11% increase year-over-year. While these figures indicate growth, the market seems to be reacting negatively to the overall guidance and operational changes presented.

For the full year 2024, Zoetis reported total revenue of $9.3 billion, an 8% increase from 2023, with adjusted net income reaching $2.7 billion, or $5.92 per diluted share. Despite these positive numbers, the company's decision to divest certain product lines, including its medicated feed additive portfolio, may have raised concerns among investors regarding future revenue streams.

Looking ahead, Zoetis provided guidance for 2025, forecasting revenue between $9.225 billion and $9.375 billion, with diluted EPS expected to be between $5.70 and $5.80. This outlook suggests a potential slowdown in growth, which may be contributing to the stock's premarket drop.

As the market opens, investors will be closely monitoring Zoetis's performance and any further developments that may impact its stock price. The company remains a key player in the animal health industry, but today's decline indicates that investors are cautious about its future trajectory.