It has been about a month since the last earnings report for Zoetis (ZTS). Shares have added about 1.4% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Zoetis due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Zoetis Q2 Earnings & Revenues Beat, ’24 Outlook Raised

Zoetisdelivered second-quarter 2024 adjusted earnings (excluding one-time items) of $1.56 per share, which surpassed the Zacks Consensus Estimate of $1.49. In the year-ago quarter, the company delivered adjusted earnings of $1.41 per share.

Total revenues grew 8% year over year to $2.36 billion in the reported quarter, which also beat the Zacks Consensus Estimate of $2.30 billion. In the year-ago quarter, the company reported total revenues of $2.18 billion.

Quarterly Highlights

Zoetis derives the majority of its revenues from a diversified product portfolio of medicines and vaccines used to treat and protect livestock and companion animals. The company reports business results under two geographical operating segments — the United States and International.

Revenues from the U.S. segment increased 12% year over year to $1.31 billion in the reported quarter, beating both the Zacks Consensus Estimate as well as our model estimate of $1.26 billion.

Sales of companion animal products in the U.S. region jumped 13% from the prior-year quarter’s level to $1.08 billion, driven by Zoetis’ monoclonal antibody products for osteoarthritis (OA) pain, Librela for dogs and Solensiafor cats, as well as its flea, tick and heartworm combination product for dogs, Simparica Trio. The uptick was also fueled by the company’s key dermatology portfolio, including Apoqueland Cytopoint.

Sales of livestock products in the United States increased 11% in the second quarter to $228 million, mainly driven by higher sales ofcattle and swine products due to favorable timing of supply of ceftiofur compared with the year-ago quarter.

Revenues in the International segment improved 4% year over year on a reported basis and 10% on an operational basis to $1.04 billion, beating both the Zacks Consensus Estimate and our model estimate of $1.02 billion.

Sales of companion animal products rose 7% on a reported basis and 12% on an operational basis, driven by growth in several key products. These included OA pain products, Librela for dogs and Solensia for cats, dermatology products like Apoquel and Cytopoint, as well as Zoetis’ parasiticide products, such as Simparica and the Simparica Trio.