Zoetis Inc.: Double-Digit Growth in Major Franchises Propelling Our ‘Buy’ Rating!

Zoetis reported strong financial results for its fiscal year 2024, reaching the high end of its guidance, largely driven by double-digit operational revenue growth of 11%. The company’s robust performance is attributed to its formidable portfolio spanning both the Companion Animal and Livestock segments. For the U.S., revenue surged by 11%, while international revenue saw a 10% operational increase, demonstrating the company’s capability to navigate a competitive landscape effectively. The Companion Animal segment experienced a 14% operational rise, boosted by the Simparica franchise which grew 28% operationally, and the OA pain franchises, Librela and Solensia, which collectively rose 80% operationally. However, while the Livestock segment also performed well with a 5% operational growth, this was in part due to adjustments stemming from recent divestitures in its product portfolio.