Zoetis Inc. Poised for Q3 Earnings Report Amidst Mixed Market Performance
Zoetis Inc. (ZTS), based in Parsippany, New Jersey, is a leading force in the animal health sector. The company develops, manufactures, and distributes medicines, vaccines, and diagnostics for both pets and livestock. With a market cap of $87.15 billion, Zoetis caters to veterinarians, pet owners, and livestock producers around the globe. Investors are eager for the company to release its Q3 earnings before the market opens on Monday, Nov. 4.
Expectations for Upcoming Earnings
Analysts predict ZTS will report a profit of $1.46 per share, marking a 7.4% increase from $1.36 reported in the same quarter last year. It’s worth noting that Zoetis has fallen short of Wall Street’s earnings expectations in three of its last four quarters.
A Look at Previous Performance
In the previous quarter, the company’s adjusted earnings reached $1.56 per share, exceeding the consensus estimate by 4.7%. This strong performance stemmed from increased demand for animal health products in the U.S., driving both earnings and revenue growth.
Looking Ahead to Fiscal 2024
For fiscal 2024, analysts forecast ZTS to deliver an EPS of $5.83, which would represent a 9.6% rise from $5.32 in fiscal 2023.
Stock Performance Insights
Year-to-date, ZTS stock has decreased by 3.2%, underperforming the broader S&P 500 Index’s ($SPX) 22.5% gains and the Health Care Select Sector SPDR Fund’s (XLV) 11.7% gain over the same period.
Market Reactions to Recent Earnings
In contrast to its overall performance, Zoetis stock rose 6% after the company reported its Q2 earnings on Aug. 6. Revenue during that quarter increased by 8.3% year over year to $2.4 billion, surpassing Wall Street expectations by 2.2%. Additionally, Zoetis saw a noticeable 49.9% year-over-year increase in cash flow from operating activities for the first half of 2024.
Analyst Outlook and Price Target
The general consensus among analysts on ZTS stock is optimistic, with a “Strong Buy” rating given by 14 out of 15 analysts. The remaining analyst recommends a “Moderate Buy.”
The average analyst price target for ZTS stands at $221.31, indicating a potential upside of 15.9% from current prices.
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On the date of publication, Rashmi Kumari did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are provided solely for informational purposes. For further details, please view the Barchart Disclosure Policy here.
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