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Zoetis (ZTS) to Report Q4 Earnings: What's in the Cards?
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Zoetis, Inc. (ZTS - Free Report) is anticipated to beat estimates when it reports its fourth-quarter and full-year 2023 results on Feb 13, before market open.
Zoetis has an encouraging surprise history so far. The bottom line surpassed estimates in three of the trailing four quarters and met on the other occasion. The company delivered an average earnings surprise of 2.68%.
Let's see how things might have shaped up in the to-be-reported quarter.
Factors to Consider
The veterinary drugmaker derives most of its revenues from a diversified product portfolio of medicines and vaccines used to treat and protect livestock and companion animals. Zoetis’ remaining revenues are derived from its non-pharmaceutical product categories, such as nutritional and agribusiness, and products and services in biodevices, genetic tests and precision animal health.
The company reports business results under two geographical operating segments — the United States and International.
Fourth-quarter revenues in the United States segment are likely to have increased from the year-ago quarter, primarily driven by the rising sales of companion animal products. The Zacks Consensus Estimate for this segment is pegged at $1.19 billion.
Revenues from the International segment are likely to have increased in the fourth quarter of 2023. The Zacks Consensus Estimate for this segment is pinned at $971 million.
Shares of ZTS have gained 23.6% in the past year against the industry’s 1.7% decline.
Image Source: Zacks Investment Research
In the previous quarter, the increased sales of Zoetis’ key dermatology products, Apoquel and Cytopoint, as well as parasiticide product Simparica Trio, boosted the sales of its companion animal products in the U.S. region. Growth in the sales of the company’s vaccine portfolio and Solensia (a monoclonal antibody product for osteoarthritis pain in cats)also contributed to the increased revenues in the third quarter. These trends are likely to have continued in the fourth quarter as well.
In June 2023, the FDA approved Apoquel Chewable tablets in the United States for controlling pruritus related to allergic dermatitis and control of atopic dermatitis in dogs at least 12 months of age. Apoquel chewable marks the first and only chewable treatment (an easier-to-use formulation) for the control of allergic itch and inflammation in dogs in the United States. This is expected to have increased sales of the product in the to-be-reported quarter.
However, sales of Zoetis’ livestock products (Draxxin and implant product Synovex) declined in the last quarter, primarily due to a decrease in cattle and swine product sales, partially offset by growth in the poultry portfolio (vaccine sales and medicated feed additives). This trend is expected to have continued in the United States in the upcoming earnings release.
Revenues in the International segment are likely to have been primarily driven by the company’s key companion animal products. These include monoclonal antibody products for osteoarthritis pain like Librela for dogs and Solensia for cats, dermatology products, such as Apoquel and Cytopoint, as well as Zoetis’ new parasiticide products like Revolution/Stronghold and the Simparica Trio.
Growth in ZTS’ livestock product sales is also expected to have contributed to its International revenues in the to-be-reported quarter.
Earnings Whisper
Our proven model predicts an earnings beat for Zoetis this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Zoetis has an Earnings ESP of +0.21% as the Most Accurate Estimate currently exceeds the Zacks Consensus Estimate by 1 cent per share.
Shares of bluebird have lost 82.7% in the past year. It beat earnings estimates in each of the last four quarters. BLUE has an earnings surprise of 83.66%, on average.
ADMA Biologics (ADMA - Free Report) has an Earnings ESP of +50.00% and a Zacks Rank #2 at present.
ADMA’s stock has jumped 43.6% in the past year. It beat earnings estimates in three of the last four quarters and met on the other occasion. ADMA has an earnings surprise of 63.57%, on average.
Ascendis Pharma (ASND - Free Report) has an Earnings ESP of +4.17% and a Zacks Rank #3 at present.
Ascendis’ stock has gained 17.6% in the past year. It beat earnings estimates in three of the last four quarters while missing the mark on the other occasion. ASND has an earnings surprise of 10.46%, on average.
Image: Shutterstock
Zoetis (ZTS) to Report Q4 Earnings: What's in the Cards?
Zoetis, Inc. (ZTS - Free Report) is anticipated to beat estimates when it reports its fourth-quarter and full-year 2023 results on Feb 13, before market open.
Zoetis has an encouraging surprise history so far. The bottom line surpassed estimates in three of the trailing four quarters and met on the other occasion. The company delivered an average earnings surprise of 2.68%.
Let's see how things might have shaped up in the to-be-reported quarter.
Factors to Consider
The veterinary drugmaker derives most of its revenues from a diversified product portfolio of medicines and vaccines used to treat and protect livestock and companion animals. Zoetis’ remaining revenues are derived from its non-pharmaceutical product categories, such as nutritional and agribusiness, and products and services in biodevices, genetic tests and precision animal health.
The company reports business results under two geographical operating segments — the United States and International.
Fourth-quarter revenues in the United States segment are likely to have increased from the year-ago quarter, primarily driven by the rising sales of companion animal products. The Zacks Consensus Estimate for this segment is pegged at $1.19 billion.
Revenues from the International segment are likely to have increased in the fourth quarter of 2023. The Zacks Consensus Estimate for this segment is pinned at $971 million.
Shares of ZTS have gained 23.6% in the past year against the industry’s 1.7% decline.
Image Source: Zacks Investment Research
In the previous quarter, the increased sales of Zoetis’ key dermatology products, Apoquel and Cytopoint, as well as parasiticide product Simparica Trio, boosted the sales of its companion animal products in the U.S. region. Growth in the sales of the company’s vaccine portfolio and Solensia (a monoclonal antibody product for osteoarthritis pain in cats)also contributed to the increased revenues in the third quarter. These trends are likely to have continued in the fourth quarter as well.
In June 2023, the FDA approved Apoquel Chewable tablets in the United States for controlling pruritus related to allergic dermatitis and control of atopic dermatitis in dogs at least 12 months of age. Apoquel chewable marks the first and only chewable treatment (an easier-to-use formulation) for the control of allergic itch and inflammation in dogs in the United States. This is expected to have increased sales of the product in the to-be-reported quarter.
However, sales of Zoetis’ livestock products (Draxxin and implant product Synovex) declined in the last quarter, primarily due to a decrease in cattle and swine product sales, partially offset by growth in the poultry portfolio (vaccine sales and medicated feed additives). This trend is expected to have continued in the United States in the upcoming earnings release.
Revenues in the International segment are likely to have been primarily driven by the company’s key companion animal products. These include monoclonal antibody products for osteoarthritis pain like Librela for dogs and Solensia for cats, dermatology products, such as Apoquel and Cytopoint, as well as Zoetis’ new parasiticide products like Revolution/Stronghold and the Simparica Trio.
Growth in ZTS’ livestock product sales is also expected to have contributed to its International revenues in the to-be-reported quarter.
Earnings Whisper
Our proven model predicts an earnings beat for Zoetis this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Zoetis has an Earnings ESP of +0.21% as the Most Accurate Estimate currently exceeds the Zacks Consensus Estimate by 1 cent per share.
Zacks Rank: ZTS currently has a Zacks Rank #3.
Zoetis Inc. Price, Consensus and EPS Surprise
Zoetis Inc. price-consensus-eps-surprise-chart | Zoetis Inc. Quote
Other Stocks to Consider
Here are some other stocks in the same industry that, too, have the right combination of elements to beat on earnings this time around:
bluebird bio (BLUE - Free Report) has an Earnings ESP of +28.34% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of bluebird have lost 82.7% in the past year. It beat earnings estimates in each of the last four quarters. BLUE has an earnings surprise of 83.66%, on average.
ADMA Biologics (ADMA - Free Report) has an Earnings ESP of +50.00% and a Zacks Rank #2 at present.
ADMA’s stock has jumped 43.6% in the past year. It beat earnings estimates in three of the last four quarters and met on the other occasion. ADMA has an earnings surprise of 63.57%, on average.
Ascendis Pharma (ASND - Free Report) has an Earnings ESP of +4.17% and a Zacks Rank #3 at present.
Ascendis’ stock has gained 17.6% in the past year. It beat earnings estimates in three of the last four quarters while missing the mark on the other occasion. ASND has an earnings surprise of 10.46%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.