Author Archives: Scalper1
Zoetis Tops Q4 Estimates, But FX Headwinds Hit Revenue Guidance
Animal-health giant Zoetis ( ZTS ) beat Q4 earnings estimates but trimmed its revenue guidance Tuesday, as the company continued to face foreign-exchange headwinds. Zoetis’ earnings, excluding one-time items, rose 8% to 43 cents a share, beating analysts’ consensus by 4 cents, according to Thomson Reuters. Revenue shrank 3% to $1.27 billion, though still about $20 million above consensus. Excluding the foreign-exchange impact, revenue rose 6%. For the year, earnings increased 13% to $1.77 a share, while sales slipped a fraction to $4.77 billion. Zoetis affirmed its previous 2016 adjusted EPS guidance of $1.71 to $1.81 a share, but it shaved $100 million off its revenue forecast, which is now $4.65 billion to $4.775 billion. And its 2017 revenue guidance of $4.95 billion to $5.15 billion is about $75 million lower than the previously given range, while the EPS forecast of $1.95 to $2.13 remains the same. The sales guidance was hit by foreign-exchange rates, but Zoetis said that it was able to keep that from affecting the bottom line. “Despite the continued negative impact of foreign currency since we provided guidance in November, we have been able to offset that impact on our adjusted diluted EPS, based on the strong momentum in our business, advancement of our R&D pipeline and successful execution of our efficiency plans,” Zoetis CFO Paul Herendeen said in a statement. Like many other medical firms this earnings season, Zoetis beat Q4 earnings largely on a lower-than-expected tax rate, though the top line also benefited from a $28 million beat in the companion-animal business. The livestock side came in a bit light. Zoetis stock popped nearly 4% in early trading on the stock market today , but it soon reversed course and by midmorning was down 1%.
Verizon Edges AT&T As Top Telecom Brand; Comcast Xfinity In Top 10
Verizon Communications ( VZ ) once again had the top-ranked global telecom brand among service providers, though cable firm Comcast ’s ( CMCSA ) Xfinity service cracked the top 10 for the first time, according to U.K.-based research firm Brand Finance. Among telecom network gear makers, China’s Huawei overtook Cisco Systems ( CSCO ) for the top spot worldwide, Brand Finance said. Verizon’s brand is ranked No. 6 globally among all technology companies, behind Apple ( AAPL ), Alphabet ‘s ( GOOGL ) Google, Samsung, Amazon.com ( AMZN ) and Microsoft ( MSFT ). In the U.S., Verizon edged out AT&T ( T ) in branding power. Wireless service providers are among the biggest advertisers. AT&T, which acquired satellite TV broadcaster DirecTV in July, has so far kept the DirecTV brand in its marketing. Comcast’s Xfinity ranked No. 10 globally in the Brand Finance report. Analysts credit Comcast’s Xfinity service platform with improving video subscriber results, owing to video-on-demand and cloud DVR features. Verizon has ramped up marketing for its new Go90 mobile video service, including live concerts and billboards, but Verizon’s own brand doesn’t appear in its Go90 commercials. The mobile video service can be downloaded as a mobile app by non-Verizon subscribers, though some features and perks are available only to Verizon customers. “Verizon’s most important milestone after the last year was the completion of its acquisition of AOL , a deal which significantly bolsters Verizon’s potential content offering. It is also reinforcing its established mobile dominance by pioneering the use of 5G,” said the Brand Finance report. The top 10 global telecom service brands also include: China Mobile ( CHL ), Deutsche Telekom ( DTEGY ), Vodafone Group ( VOD ), Softbank ( SFTBY ), Orange, BT and Japan’s NTT ( NTT ).