5 Insightful Analyst Questions From Zoetis's Q1 Earnings Call

Zoetis delivered revenue and adjusted EPS above Wall Street expectations in Q1, driven by strong organic operational growth across its diverse portfolio. Management pointed to particularly robust performance internationally, with the Simparica, dermatology, and osteoarthritis pain franchises fueling momentum. CEO Kristin Peck highlighted, “our innovative companion animal portfolio grew 9% operationally, fueled by sustained demand for our diverse, market-leading franchises.” Despite ongoing macroeconomic and regulatory uncertainty, Zoetis credited its global footprint and balanced product mix for maintaining steady demand.

Is now the time to buy ZTS? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Zoetis’s Q1 Earnings Call

• Erin Wright (Morgan Stanley) asked about the impact of tariffs on guidance and mitigation plans. CFO Wetteny Joseph explained that only currently enacted tariffs are included and highlighted the company’s geographic manufacturing diversity as a buffer against further disruptions.
• Michael Ryskin (Bank of America) questioned the competitive landscape in parasiticides and dermatology. CEO Kristin Peck stressed Zoetis’ first-mover status and strong market share, while Joseph noted that double-digit growth is still expected for key franchises despite new entrants.
• Jon Block (Stifel) asked for clarity on the drivers of the full-year EPS guidance increase and the near-term growth outlook for Librela. Joseph attributed the EPS raise primarily to favorable foreign exchange and lower share count, with limited tariff headwinds, and Peck reiterated ongoing investment in medical education to support Librela’s adoption.
• David Westenberg (Piper Sandler) inquired about the effect of Amazon’s entry into pet medication sales and FDA staffing levels. Peck and Joseph noted that alternative channels are expanding but remain neutral to positive for economics, and reported no slowdown in FDA review timelines affecting the pipeline.
• Brandon Vazquez (William Blair) questioned consumer compliance trends and pricing mix expectations. Peck acknowledged more measured consumer behavior for chronic therapies, while Joseph indicated that the mix of price and volume growth should remain consistent through the year.

Catalysts in Upcoming Quarters

In coming quarters, the StockStory team will watch (1) the pace of adoption for Zoetis’ OA pain franchise, especially with the anticipated launch of long-acting therapies, (2) the impact of new competitors in dermatology and parasiticides on market share, and (3) the company’s ability to manage tariff-related cost pressures without eroding margins. Progress on medical education initiatives and the continued expansion of retail and alternative channels will be additional signposts for execution.

Zoetis currently trades at $156.49, down from $158.26 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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