Zoetis Inc. stock research
FY2024 Q4
Zoetis (ZTS) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit were lower than the immediately preceding quarter but higher than the same quarter one year earlier. Cost of revenue was slightly higher than the prior quarter and lower than the year-ago quarter, resulting in a gross margin that weakened sequentially but improved year over year.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit were lower than the immediately preceding quarter but higher than the same quarter one year earlier. Cost of revenue was slightly higher than the prior quarter and lower than the year-ago quarter, resulting in a gross margin that weakened sequentially but improved year over year.
- The strongest observable margin driver is the year-over-year improvement in gross margin, supported by a lower cost of revenue relative to revenue compared with the same quarter last year.
- Compared with the immediately preceding quarter, gross margin weakened as revenue declined more than cost of revenue. Compared with the same quarter one year earlier, gross margin improved as revenue increased while cost of revenue decreased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.5%
Gross profit
$1.6B
Revenue
$2.3B
Cost of revenue
$707.0M
Quarter-over-quarter change
-1.2 pts
Year-over-year change
+2.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $2.2B | $1.5B | $643.0M | 70.6% |
| Jun 30, 2024 | $2.4B | $1.7B | $668.0M | 71.7% |
| Sep 30, 2024 | $2.4B | $1.7B | $701.0M | 70.6% |
| Dec 31, 2024 | $2.3B | $1.6B | $707.0M | 69.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-1.2 pts
Year-over-year change
Dec 31, 2023
+2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year improvement in gross margin, supported by a lower cost of revenue relative to revenue compared with the same quarter last year.
Compared with the immediately preceding quarter, gross margin weakened as revenue declined more than cost of revenue. Compared with the same quarter one year earlier, gross margin improved as revenue increased while cost of revenue decreased.
Monitor inventory changes, as the filing notes a decrease primarily due to a divestiture and higher-than-anticipated sales for certain products.