Latest earnings: Zoetis, IDEXX and Trupanion
While performance is going well, some firms are slightly trimming their guidance for the rest of the year.
Animal health companies Zoetis and IDEXX and insurance provider Trupanion released their latest earnings a few days ago.
The results were a mixed bag, with IDEXX and Zoetis having to trim forecasts anticipating a hard end of the year. However, it was a different story for Trupanion, with an evident positive direction compared to the company’s position this time last year.
Zoetis
Zoetis’ animal category posted an increase in sales and profit in the third quarter of the year and the first 9 months of 2023.
In Q3, the company saw an 11% rise in its total revenue within the pet category, reaching $1.4 billion (€1.3B), up from $1.2 billion (€1.1B) in 2022. According to CEO Kristin Peck, this was driven by the performance of dermatology, pet parasiticides, osteoarthritis pain and diagnostics.
The increase in the first 9 months of the year was slightly lower, with revenue jumping 6% to $4.1 billion (€3.8B). Despite the increase in sales, Zoetis cut its annual profit forecast as the company failed to reach its estimated quarterly sales targets. Its annual sales forecast also reduced slightly to fall between $8.48 billion and $8.55 billion (€7.9B–€7.98B).
IDEXX
Global pet health care company IDEXX also noted some overall company difficulties, which led to them readjusting their annual sales forecasts. The company says this was partially due to a slower-than-expected rise in the number of visits to animal clinics.
The company now sees annual revenue to fall between $3.63 billion and $3.65 billion (€3.39B–€3.4B), slightly lower compared to its previous forecast of $3.66 billion to $3.72 billion (€3.4B–€3.27B).
IDEXX’s total sales in Q3 2023 rose about 9% to $916 million (€885M), but Reuters notes that it missed analysts’ average estimate of $926 million (€864.9M). The firm’s pet segment showed good performance, with revenue in the quarter reaching $837 million (€781.6M), 9% more than during the same period in 2022.
Trupanion
Seattle-based insurance provider Trupanion posted revenue of $285.9 million (€267M) in the third quarter of 2023, an increase of 22% compared to last year. The company enjoyed a rise of 19% in its total pet enrolments.
Darryl Rawlings, CEO and Chair of the Board, told investors that Trupanion’s core subscription business drove the positive numbers. According to the earnings report, its subscription-based revenue increased by 20%, totaling $182.9 million (€170M).
The company also reduced its net loss in the third quarter of 2023, which was $4 million (€3.73M). During the same period in 2022, it was over triple the amount at $12.9 million (€12M).
According to Dow Jones, Trupanion stock jumped 12% upon the positive earnings release.
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