Business Corpus: Why Fido's Drugmaker Hit A 3-Month Low Despite Topping Quarterly ViewsZoetis on Wednesday reported adjusted income of 75 cents per share on sales of $1.37 billion for the first quarter. The post Why Fido's Drugmaker Hit A 3-Month Low Despite Topping Quarterly Views appeared first on Investor's Business Daily.

[Collection]

Zoetis (ZTS) plunged to a three-month low Wednesday after it topped Wall Street's first-quarter expectations, but noted competition hurt some products in the U.S. and 2018 profit guidance lagged by a penny.

In early trading on the stock market today, Zoetis shares gapped down 4.2%, crashing through its 50-day moving average to 79.90, after earlier falling as much as 7.7%. At the same time, drug stocks collectively lost more than 1%.

For the quarter, Zoetis reported adjusted income of 75 cents per share, rising 41.5% and ahead of views from analysts polled by Zacks Investment Research by a nickel. Sales of $1.37 billion grew 11% and beat analyst views for $1.34 billion.

U.S. Segment Challenged

U.S. revenue was $634 million, up 5%. Sales of products for pets rose 6%, driven by growth in dermatology and new products. But "this growth was partially offset by lower sales of certain in-line products due to expected competition," Zoetis said in a news release.

Sales of livestock products in the U.S. advanced 4%, led by cattle and poultry, as well as a return to growth in the swine business. But unfavorable conditions in dairy persisted, "including declining producer profitability due to low milk prices."

Internationally, sales grew 18% to $726 million. Sales of pet products grew 28%, helped by dermatology, an oral parasiticide and vaccines in China. Livestock product sales advanced 14% on strong demand in poultry and cattle.

Across the globe, livestock products accounted for $770 million in sales, up 10%, and pet products grew 14% to $590 million. But contract manufacturing plummeted 45% to $6 million.

For the year, Zoetis guided to adjusted profit of $2.96-$3.10 per share and $5.675 billion to $5.8 billion in sales. The midpoint of adjusted profit missed the consensus by a penny. But the midpoint of sales guidance narrowly beat analysts' view for $5.71 billion in sales.

Looking For The Next Nvidia? Start With This Simple Routine

What Is Inflation, And Why Does It Matter To The Fed — And You?

The post Why Fido's Drugmaker Hit A 3-Month Low Despite Topping Quarterly Views appeared first on Investor's Business Daily.