Zoetis: Q1 2021 Results Quick Read (Substack Exclusive)

Flash Note (ZTS US) (Buy)

Zoetis released Q1 2021 results this morning. Zoetis stock has been Buy-rated in our coverage since March 2021. Shares are currently up 1% in pre-market trading.

Double-Digit Growth in Revenues and EPS

In Q1 2021, on an operational basis, Zoetis grew its total revenues by 21% year-on-year (against growth of 7% in Q1 2020), led by Companion Animal revenues growing 34%:

Zoetis’ Net Income grew 34% on an operational basis (against growth of 10% in Q1 2020), helped by operational leverage, with Cost of Sales, SG&A and R&D all growing significantly less than revenues: