In a release dated November 3rd, Zoetis (ZTS) reported on results for the third quarter of fiscal 2022 ending September 30th.  The Company reported net income of $529 million on revenue of $2,002 million.  These values compare with the third quarter of 2021 with net earnings of $552 million on sales of $1,990 million.  Diluted EPS declined from $1.16 in the third quarter of FY 2021 to $1.13 for the most recently completed quarter.

For Q3 2022 gross margin was 69.8 percent (70.8 percent Q3 2021); operating margin attained 37.9 percent (38.5 percent)

In reviewing product segments, Q3 2022 total revenue from companion animal products amounted to $1,271 million (63.4 per cent of Company sales) compared to revenue from livestock products amounting to $708 million (35.4 percent).  The remainder was derived from other products and services. 

Domestic U.S. sales of livestock products represented 24.9 percent of revenue of $1,090 million, down 8.5 percent from Q3 2021.  International sales of livestock products represented 49.2 percent of non-U.S. Company revenue of $889 down 6.6 percent from Q3 2021.  Poultry products represented 16.3 percent of livestock sales of $708, a fractional increase from Q3 2021.

In commenting on Q2 results, Kristin Peck, CEO stated, "As the world continues to face dynamic market conditions and uncertainty in the global economy, our business has been tested and continues to perform well based on our diverse, durable product portfolio and global scale,” She added “While we remain confident in the strength and growth drivers of our business, we are lowering 2022 guidance to reflect lower than expected sales in the second half of the year related to continued supply constraints, veterinary workforce challenges and recent changes to foreign exchange rates."

Zoetis posted guidance for fiscal 2022 including revenue ranging from $8,000 million to $8,075 million and diluted EPS ranging from $4.51 to $4.59.

The Company posted total assets of $13,674 million on September 30th of which $4,011 million represented goodwill and intangibles against a market capitalization of $69,170 million. Zoetis has traded over the past 52-weeks over a range of  $124.15 to $249.27 with a 50-day moving average of $148.26. The Company achieved a trailing twelve-month operating margin of 35.5 percent and a profit margin of 25.8 percent. The return on assets attained 13.0 percent and 44.2 percent on equity.