Zoetis Inc. (NYSE:ZTS) today reported its financial results for the third quarter of 2016 and updated its guidance for full year 2016 and 2017. The company reported revenue of $1.2 billion for the third quarter of 2016, an increase of 2% compared with the third quarter of 2015. Net income for the third quarter of 2016 was $239 million, or $0.48 per diluted share, an increase of 26% to both on a reported basis. Adjusted net income 1 for the third quarter of 2016 was $258 million, or $0.52 per diluted share, an increase of 2% and 4%, respectively. Adjusted net income for the third quarter of 2016 excludes the net impact of $19 million for purchase accounting adjustments, acquisition-related costs and certain significant items. On an operational 2 basis, revenue for the third quarter of 2016 increased 4%, excluding the impact of foreign currency. Adjusted net income for the third quarter of 2016 increased 6% operationally, excluding the impact of foreign currency. EXECUTIVE COMMENTARY "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. "We continue to deliver solid operational revenue growth, while reducing our costs and improving margins. We are effectively implementing our operational efficiency initiative and are on target to exceed $300 million in savings in 2017," said Glenn David, Executive Vice President and Chief Financial Officer of Zoetis. "We remain committed to allocating resources to the most promising opportunities and returning excess capital to our shareholders. Based on our strong performance through the first nine months, we are raising our earnings guidance for 2016 and improving our earnings guidance for 2017 despite the impact of foreign currency."