Zoetis lowers full-year outlook after weak U.S. companion-animal demand offsets gains in livestock and diagnostics.
Zoetis posted second-quarter revenue of $2.5 billion, unchanged year-over-year on a reported basis and down 1% organically. Adjusted earnings per share climbed 4% to $1.87, aided by share repurchases that reduced the share count.
The company cited declining veterinary visits and selective pet-owner spending as headwinds, particularly in U.S. companion-animal and dermatology segments. Diagnostics and livestock revenue rose 12% and 11%, respectively, while foreign-exchange headwinds added $60 million to $65 million in revenue pressure.
Zoetis now expects full-year organic operational revenue to decline 3% to 1% and adjusted net income to fall 9% to 5%. July trends showed no stabilization, reinforcing the revised guidance.