Zoetis Inc. (ZTS) has reported a 26.46 percent rise in profit for the quarter ended Oct. 02, 2016. The company has earned $239 million, or $0.48 a share in the quarter, compared with $189 million, or $0.38 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $258 million, or $0.52 a share compared with $252 million or $0.50 a share, a year ago.

Revenue during the quarter went up marginally by 2.22 percent to $1,241 million from $1,214 million in the previous year period. Gross margin for the quarter expanded 164 basis points over the previous year period to 66.96 percent. Total expenses were 70.10 percent of quarterly revenues, down from 75.29 percent for the same period last year. This has led to an improvement of 518 basis points in operating margin to 29.90 percent.

Operating income for the quarter was $371 million, compared with $300 million in the previous year period.

"In the third quarter, we grew revenue 4% operationally, with particular strength in our companion animal portfolio due to increased global sales of APOQUEL and other new products," said Zoetis chief executive officer Juan Ramón Alaix. "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." "Our operational efficiency initiative as well as recent product launches are having clear benefits on our profitability, while we continue to invest in our business to sustain and grow our market leadership over the long term," said Alaix.

For the fiscal year 2016, Zoetis Inc. projects revenue to be in the range of $4,850 million to $4,900 million. The Company expects net income to be in the range of $830 million to $875 million and adjusted net income to be in the range of $955 million to $980 million. It forecasts diluted earnings per share to be in the range of $1.66 to $1.75. and forecasts diluted earnings per share to be in the range of $1.91 to $1.96 on adjusted basis.