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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%. Scalper1 News
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