Zoetis Q2 Profit Rises, Adj. Profit Meets Estimates; Lifts 2014 Outlook

(RTTNews) - Zoetis Inc. (ZTS), the former animal health business of Pfizer Inc. (PFE), reported that its net income for the second quarter of 2014 increased to $136 million or $0.27 per share, from $128 million or $0.26 per share in the second quarter of 2013.

The company narrowed its revenue and adjusted earnings guidance for full year 2014, raising the lower end of previous ranges for both items. The company also revised its reported earnings per share guidance to account for a one-time charge related to a commercial settlement with customers in Mexico that impacted this quarter.

Adjusted net income for the second quarter of 2014 improved to $189 million, or $0.38 per share, from $178 million or $0.36 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.38 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted net income for the latest-quarter excluded the net impact of $53 million, or $0.11 per share, for purchase accounting adjustments, acquisition-related costs and certain significant items.

Revenue for the quarter grew to $1.158 billion from $1.114 billion in the year ago quarter. Wall Street analysts had a consensus revenue estimate of $1.16 billion for the quarter.

Looking ahead for 2014, the company now expects earnings per share to be in the range of $1.16 to $1.20 per share, Adjusted earnings per share of $1.50 to $1.54 per share, on projected revenue of $4.675 billion to $4.750 billion. Wall Street currently is looking for fiscal year 2014 earnings of $1.54 per share on annual revenues of $4.72 billion.

The company said in May that it expected earnings per share to be between $1.15 and $1.21, adjusted earnings per share of $1.48 to $1.54, on projected revenue of $4.65 billion to $4.75 billion for 2014.