Zoetis Inc. Poised for Growth as Fourth-Quarter Report Approaches
Parsippany, New Jersey-based Zoetis Inc. (ZTS) specializes in animal health medicines, vaccines, and diagnostic services. With a market capitalization of $75.4 billion, it stands as the largest global producer of veterinary pharmaceuticals, operating in over 100 countries across North America, Europe, and beyond.
What to Expect from Fourth-Quarter Earnings
The healthcare giant is scheduled to unveil its fourth-quarter results before the market opens on Thursday, February 13. Analysts anticipate that ZTS will report a non-GAAP profit of $1.38 per share, reflecting an 11.3% increase from $1.24 in the same quarter last year. Recently, the company has met or exceeded Wall Street’s earnings expectations three times out of the past four quarters.
Future Earnings Predictions
Looking at the broader financial horizon, analysts project that Zoetis will achieve an adjusted earnings per share (EPS) of $5.91 for fiscal 2024, which is an 11.1% rise from $5.32 in fiscal 2023. Furthermore, fiscal 2025 should see a near 8% year-over-year growth, bringing the EPS to $6.38.
Stock Performance Overview
Over the last 52 weeks, ZTS stock has fallen by 12.2%. In comparison, the Healthcare Select Sector SPDR Fund (XLV) saw a slight gain of 1%, while the S&P 500 Index ($SPX) surged by 24.6% during that same period.
Q3 Results and Market Reactions
Despite outperforming expectations, Zoetis’ stock dropped by 3.7% following its Q3 results released on November 4. The company recorded a solid 11% year-over-year increase in revenue, totaling $2.4 billion. Growth was particularly strong in the U.S., where revenue increased by 15% to $1.3 billion, fueled by high demand for companion animal products. The international segment also benefited, showing a 7% increase in livestock product sales reported globally, and a 15% operational growth.
Zoetis demonstrated notable profitability increases as well, with adjusted net income rising by 13.8% to $716 million. An adjusted EPS of $1.58 exceeded analysts’ expectations by 8.2%. Capitalizing on these robust Q3 results, the company raised its revenue and adjusted EPS guidance for the full year.
Analyst Sentiments and Price Target
Analyst sentiment surrounding ZTS stock remains strong, with an overall “Strong Buy” rating from 17 analysts. Out of these, 15 recommend “Strong Buy,” one suggests “Moderate Buy,” and another indicates a “Hold” rating. The mean price target for the stock stands at $216.53, suggesting a potential upside of 27.8% from current levels.
On the date of publication, Aditya Sarawgi did not hold any positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
