Zoetis (ZTS) shares were rallying Wednesday after the pet-medication giant unveiled better-than-expected earnings for its third quarter, which CEO Juan Ramón Alaix attributed largely to canine-allergy drug Apoquel and other new products.
Earnings per share of $0.52 for the quarter topped analyst expectations by about 11% on sales of $1.24 billion, which slightly beat consensus forecasts. Shares also rose because Zoetis raised 2016 earnings guidance to a range of $1.91 to $1.96, from previous guidance of $1.86 to $1.93.
"The livestock portfolio also showed positive operational growth in the quarter, excluding the impact of product rationalizations -- a testament to the value of our diversification," Alaix added in a statement
Meanwhile, shares of Action Alerts PLUS
) were dropping about 5% in mid-afternoon trading after the drug maker posted lackluster earnings for its third quarter. Earnings per share clocked in at $3.32, 7% below consensus forecasts, while sales of $3.6 billion missed estimates by about 1%.
Action Alerts PLUS co-manager Jack Mohr said in a report
the miss was balanced by new capital allocation initiatives, including a $10 billion buyback program and the initiation of a $0.70-per-share quarterly dividend.
"The mixed report was defined by a line-in-the-sand growth bifurcation where the company's core branded portfolio (75% of sales across 15 product lines) delivered double-digit sales growth while its non-core assets (mainly beleaguered Alzheimer's drug Namenda XR) experienced severe declines," he added.
U.S. markets in general were broadly down as oil prices fell more than 3% to $45.17 a barrel, weighing on shares of oil-and-gas giant Weatherford
) , a member of Real Money's Stressed Out watch list
, which were down about 11% in mid-afternoon trading. Shares of Houston oil giant Marathon Oil
) were also down about 2%.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.