Zoetis cuts annual forecasts as pet healthcare demand slows

Aug 6 (Reuters) – Animal health company Zoetis cut its annual forecasts on Thursday after missing Wall Street estimates for second-quarter revenue, as softer demand for pet healthcare products and increased competition weighed.

Shares of the company were down about 3% in premarket trading.

• CEO Kristin Peck said lower clinic visits, pet owners’ price sensitivity and heightened competition in key categories pressured the companion-animal market.

• Zoetis cut its 2026 forecast for adjusted earnings per share to $6.15 to $6.25, compared with its prior view of $6.85 to $7.00.

• The midpoint of the new forecast is below analysts’ average estimate of $6.88, according to data compiled by LSEG.

• The company also lowered its annual revenue forecast to between $9.12 billion and $9.32 billion, from $9.68 billion to $9.96 billion previously.

• Peer IDEXX Laboratories on Tuesday raised its annual profit forecast after reporting better-than-expected quarterly results, helped by steady demand for pet health care diagnostics and higher testing volumes at veterinary clinics.

• Quarterly revenue in Zoetis’ companion-animal segment — its largest business — fell 5% to $1.71 billion, below analysts’ estimate of $1.81 billion.

• Second-quarter revenue was $2.47 billion, below analysts’ estimates of $2.50 billion, while adjusted earnings of $1.87 per share slightly topped estimates of $1.86 per share, according to LSEG data.

• Separately, Zoetis on Thursday also named former GE HealthCare CFO Jay Saccaro as chief financial officer and chief operating officer, effective August 17. Current CFO Wetteny Joseph will become a special adviser to the CEO until early 2027 to support the transition.

(Reporting by Sahil Pandey in Bengaluru; Editing by Jonathan Ananda)