Zoetis Inc.’s ZTS first-quarter 2016 earnings of 48 cents per share came in ahead of the Zacks Consensus Estimate of 41 cents. Earnings also increased 17% from the year-ago period.Zoetis Inc. (ZTS) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany Total revenue increased 5% year over year to $1.162 billion in the first quarter of 2016. Revenues were also above the Zacks Consensus Estimate of $1.092 billion. Foreign currency movements impacted revenues negatively by 7%. Quarterly Details Zoetis manages its business across two regional operating segments: the U.S. and International. Within these segments, the company delivers a diverse portfolio of products for livestock and companion animals. These segment results include six additional calendar days, as the first quarter of 2016 had six additional calendar days compared with the first quarter of 2015. In the reported quarter, sales of livestock products accounted for 58.8% of the total revenue. Approximately 40.1% of revenues in the quarter came from the sale of companion animal products, while the remaining came from contract manufacturing. Revenues in the U.S. segment increased 12% from the year-ago period to $582 million. Sales of companion animal products grew 32% reflecting increased sales of Apoquel, initial sales of other products into expanded distribution relationships, and the addition of products acquired from Abbott Laboratories’ ABT Animal Health business. Livestock revenue declined 4% due to decreased sales of cattle and swine products. Sales at the International segment were, however, down 1% to $567 million (up 13% operationally). While sales of companion animal products increased 11% (up 23% operationally), sales of livestock products were down 5% (up 9% operationally) in the reported quarter. Outlook Updated Zoetis updated its guidance for 2016 to reflect the impact of foreign exchange rates as of April and current views of its operations. For 2016, the company expects earnings in the range of $1.83 to $1.90 per share (old guidance: $1.71 to $1.81 per share) on revenues of $4.775 billion and $4.875 billion (old guidance: $4.65 billion and $4.775 billion). The Zacks Consensus Estimate for earnings is $1.79 per share on revenues of $4.748 billion. The company also updated its outlook for 2017. In 2017, the company expects earnings in the range of $2.24 to $2.38 per share (old guidance: $2.18 to $2.32 per share) on revenues of $5.075 billion and $5.275 billion (old guidance: $4.95 billion and $5.15 billion). The Zacks Consensus Estimate for earnings is $2.26 per share on revenues of $5.069 billion. Our Take Zoetis’ first-quarter results were better than expected with the company beating on both top- and bottom-line estimates. However, unfavourable currency movement continued to hurt the top line. Nevertheless, we are positive on the Nov 2015 Pharmaq acquisition. We expect to see more of such acquisitions/deals at the company in the near future, as it continues to focus on its strategy of acquiring complementary businesses and products. Zoetis carries a Zack Rank #3 (Hold). A couple of better-ranked stocks in the health care sector are ANI Pharmaceuticals, Inc. ANIP and OncoMed Pharmaceuticals, Inc. OMED, both sporting a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ABBOTT LABS (ABT): Free Stock Analysis Report ONCOMED PHARMA (OMED): Free Stock Analysis Report ZOETIS INC (ZTS): Free Stock Analysis Report ANI PHARMACEUT (ANIP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research