(Reuters) -Zoetis raised annual forecast and beat second-quarter estimates on Tuesday, driven by strong demand for its medicines and vaccines for pets, sending the animal healthcare company's shares surging about 9% in premarket trading.
Analysts remain optimistic about the long-term prospects for the animal health industry, citing a rebound in veterinary clinic visits over the coming years as pet ownership grows and aging animals require chronic care treatments.
The New Jersey-based company expects
2025 revenue to be between $9.45 billion and $9.60 billion, compared with its earlier range of $9.43 billion to $9.58 billion.
It also raised its forecast for annual adjusted profit per share to between $6.30 and $6.40, from $6.20 to $6.30 projected earlier.
Analysts on average were expecting annual revenue of $9.50 billion and earnings of $6.24 per share, according to data compiled by LSEG.
Zoetis said its updated forecast reflects foreign exchange rates and the impact of enacted and assumptions on announced tariffs.
During the quarter ended June 30, the company's companion animal segment, which includes treatments for dogs and cats, posted an 8% increase in revenue to $1.79 billion.
The growth was driven by robust sales of its flea, tick and heartworm combination product Simparica Trio, and its pain and dermatology drugs such as Librela, Solensia, Apoquel and Cytopoint.
Zoetis' adjusted earnings of $1.76 per share came in above the consensus estimate of $1.62 per share.
Its quarterly revenue rose 4% to $2.46 billion, compared with the estimate of $2.41 billion.
(Reporting by Kamal Choudhury in Bengaluru; Editing by Shilpi Majumdar)
