Zoetis Earnings: Librela Gets Off to Strong Start in U.S., but Simparica Trio Faces More Competition

Wide-moat Zoetis delivered fourth-quarter and full-year results that met our expectations on the top line and slightly exceeded our bottom-line projections. After minor adjustments to our model that were immaterial, we’re holding steady on our fair value estimate. Quarterly operational revenue growth of 8% offered a strong finish to 2023 where operational sales grew 7%. In particular, the companion animal segment grew 10% on an operational basis in the fourth quarter—outpacing the market. Further, quarterly livestock revenue increased 6% off a relatively soft prior-year period, which added some topspin.