(Reuters) -Animal healthcare company Zoetis on Tuesday trimmed its annual revenue forecast on expectations of softer demand for its medicines and vaccines for pets and livestock, sending its shares down over 8% in premarket trading.
Despite a rebound in veterinary visits, Zoetis experienced subdued demand for pet medicines and vaccines in the third quarter. Distributor hesitancy around restocking and consumers tightening spending due to broader economic uncertainty, weighed on sales.
The company’s companion animal segment, which includes treatments for dogs and cats, posted revenue of $1.65 billion during the quarter ended September 30, a 3% increase from the previous year.
The New Jersey-based company now expects 2025 revenue between $9.40 billion and $9.48 billion, compared with its earlier range of $9.45 billion and $9.60 billion.
It also reaffirmed its forecast for annual adjusted profit per share in the range of $6.30 and $6.40.
Analysts, on average, were expecting annual revenue of $9.52 billion and adjusted earnings of $6.35 per share, according to data compiled by LSEG.
For the reported quarter, Zoetis’ adjusted earnings of $1.70 per share came in above estimates of $1.62 per share.
Its quarterly revenue rose 1% to $2.40 billion, compared with the estimates of $2.41 billion.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Shailesh Kuber)
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