Zoetis (ZTS) has reported 16.67 percent rise in profit for the quarter ended Apr. 02, 2017. The company has earned $238 million, or $0.48 a share in the quarter, compared with $204 million, or $0.41 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $261 million, or $0.53 a share compared with $239 million or $0.48 a share, a year ago. 

Revenue during the quarter grew 5.94 percent to $1,231 million from $1,162 million in the previous year period. Gross margin for the quarter contracted 251 basis points over the previous year period to 64.01 percent. Total expenses were 70.11 percent of quarterly revenues, down from 70.31 percent for the same period last year. This has led to an improvement of 20 basis points in operating margin to 29.89 percent.

Operating income for the quarter was $368 million, compared with $345 million in the previous year period.

"In the first quarter of 2017, we continue to see positive results from our diverse portfolio, innovative new companion animal products, and a more efficient cost structure," said Juan Ramón Alaix, chief executive officer at Zoetis. "Our revenue grew 6% operationally in the first quarter, driven largely by sales of companion animal products such as Simparica, Apoquel and Cytopoint, and our livestock portfolio featured growth in swine, cattle and fish across our international markets. We posted 10% operational growth in adjusted net income - once again faster than revenue growth - as we continue delivering steady profitable results."

For financial year 2017, Zoetis forecasts revenue to be in the range of $5,100 million to $5,225 million.  It projects net income to be in the range of $1,030 million to $1,090 million. It expects adjusted net income to be in the range of $1,120 million to $1,170 million, the company expects diluted earnings per share to be in the range of $2.08 to $2.20. The company expects diluted earnings per share to be in the range of $2.26 to $2.36 on adjusted basis.