Zoetis is going to miss Wall Street's profit expectations next year.
Shares of the company, which were halted pending news, are down a bit less than 1% after resuming trade.
The news came in a release Tuesday afternoon in which the company said it expected to report adjusted earnings per share of $1.61 to $1.68 in 2015, below the $1.71 that Wall Street had been looking for.
The company said that in 2015, revenue was expected to come between $4.85 and $4.95 billion, just a hair below the $4.96 billion expected by Wall Street.
In a statement, the company's CFO Paul Herendeen said: "Below the revenue line, we expect to generate modest improvements in gross margin in the near term before accelerating after 2017. After 2015, we expect to keep our operating expense growth in the range of the inflation rate. Considering all of these factors, we believe Zoetis is a company that can grow adjusted net income in the low, double-digits over the long term."
Earlier Tuesday, the company announced a $500 million share repurchase plan. Zoetis is also holding its annual investor day, and you can read all of the company's materials here.
Zoetis is an animal health company in which activist hedge fund manager Bill Ackman recently took a 10% stake. Many see the company seen as a potential takeover target. And after the news regarding Ackman in the past day or so, it seems Zoetis got a bit jumpy about how the market would take this news, which isn't great, but isn't horrible.
On Monday, Allergan — the Botox-maker that Ackman had taken a large stake in while hoping for an acquisition by the pharmaceutical company Valeant — agreed to be acquired by Actavis in a deal worth about $219 per Allergan share.
That agreement put Ackman in-line to turn a profit north of $2 billion.
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