Zoetis Q1 ‘worse than it seems,’ says Stifel

Stifel notes that Zoetis (ZTS) Q1 organic operational revenue growth was flat versus the firm’s forecast for 2.4% growth and the Street’s 2.2% expectation. However, Zoetis’ results benefited from a “realignment” that moved $100M into Q1 as the company flipped the calendar, adds the analyst. Normalized for this, the firm believes organic operational revenue growth was 600-700 basis points below the Street’s Q1 expectations, says the analyst, who has a Hold rating on the shares.