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Zoetis (ZTS) to Report Q2 Earnings: What's in the Cards?
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Zoetis, Inc. (ZTS - Free Report) is slated to report second-quarter 2024 results on Aug 6, before the opening bell.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $2.3 billion. The consensus mark for earnings is pinned at $1.49 per share.
Zoetis has an encouraging surprise history so far. The bottom line surpassed estimates in three of the trailing four quarters and missed on the remaining occasion, delivering an average surprise of 0.95%. In the last reported quarter, the company delivered an earnings surprise of 2.99%.
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.
Zoetis reports business results under two geographical operating segments — the United States and International.
Second-quarter revenues in the United States segment are likely to have increased from the year-ago quarter, primarily driven by the rising sales of Zoetis’ companion animal products. The Zacks Consensus Estimate and our model estimate for revenues generated from this segment are pegged at $1.26 billion.
Revenues from the International segment are likely to have also increased in the to-be-reported quarter due to higher companion animal product sales. The Zacks Consensus Estimate and our model estimate for total revenues generated from this segment are pinned at $1.02 billion.
Year to date, shares of Zoetis have lost 7.9% compared with the industry’s 2.2% decline.
Image Source: Zacks Investment Research
Companion animal products sales, particularly its monoclonal antibody products for osteoarthritis pain (Librela for dogs and Solensia for cats), along with its flea, tick and heartworm combination product for dogs, Simparica Trio, are expected to have driven revenues in both the United States and International segments in the to-be-reported quarter. Zoestis’ Key dermatology products, including Apoquel and Cytopoint, are likely to have contributed to growth in these segments as well.
Last year, 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.
Zoetis’ livestock product sales in the United States are likely to have declined in the second quarter, mainly due to lower sales of cattle products.
In the International segment, total livestock product sales are likely to have increased in second-quarter 2024, primarily driven by growth in both the cattle and poultry portfolios, as a result of price increases across the broader international segment.
However, revenue growth potential in the international segment from livestock product sales is expected to have been impaired by decreased sales of Zoetis’ sheep and swine products due to unfavorable market conditions.
Earnings Whispers
Our proven model does not conclusively predict 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 not 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 +1.01% as the Most Accurate Estimate currently exceeds the Zacks Consensus Estimate by 2 cents per share.
Zacks Rank: ZTS currently has a Zacks Rank #4 (Sell).
Here are some stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Shares of Apellis have plunged 34.5% year to date. APLS beat estimates in one of the last four reported quarters, missed twice and met the mark once, delivering an average negative surprise of 6.37%. APLS is scheduled to report second-quarter results on Aug 1, before the opening bell.
BioMarin Pharmaceutical (BMRN - Free Report) has an Earnings ESP of +5.06% and a Zacks Rank #3 at present.
Shares of BioMarin have lost 12.5% year to date. BMRN beat estimates in three of the last four quarters and met the mark on the remaining occasion, delivering an average earnings surprise of 11.15%. BMRN is slated to report second-quarter 2024 results on Aug 5, after market close.
Denali Therapeutics (DNLI - Free Report) has an Earnings ESP of +14.81% and a Zacks Rank #3 at present.
Denali Therapeutics’ shares have gained 12.8% in the year-to-date period. DNLI beat estimates in two of the last four quarters and missed the mark on the other two occasions, delivering an average earnings surprise of 64.51%.
Image: Shutterstock
Zoetis (ZTS) to Report Q2 Earnings: What's in the Cards?
Zoetis, Inc. (ZTS - Free Report) is slated to report second-quarter 2024 results on Aug 6, before the opening bell.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $2.3 billion. The consensus mark for earnings is pinned at $1.49 per share.
Zoetis has an encouraging surprise history so far. The bottom line surpassed estimates in three of the trailing four quarters and missed on the remaining occasion, delivering an average surprise of 0.95%. In the last reported quarter, the company delivered an earnings surprise of 2.99%.
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.
Zoetis reports business results under two geographical operating segments — the United States and International.
Second-quarter revenues in the United States segment are likely to have increased from the year-ago quarter, primarily driven by the rising sales of Zoetis’ companion animal products. The Zacks Consensus Estimate and our model estimate for revenues generated from this segment are pegged at $1.26 billion.
Revenues from the International segment are likely to have also increased in the to-be-reported quarter due to higher companion animal product sales. The Zacks Consensus Estimate and our model estimate for total revenues generated from this segment are pinned at $1.02 billion.
Year to date, shares of Zoetis have lost 7.9% compared with the industry’s 2.2% decline.
Image Source: Zacks Investment Research
Companion animal products sales, particularly its monoclonal antibody products for osteoarthritis pain (Librela for dogs and Solensia for cats), along with its flea, tick and heartworm combination product for dogs, Simparica Trio, are expected to have driven revenues in both the United States and International segments in the to-be-reported quarter. Zoestis’ Key dermatology products, including Apoquel and Cytopoint, are likely to have contributed to growth in these segments as well.
Last year, 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.
Zoetis’ livestock product sales in the United States are likely to have declined in the second quarter, mainly due to lower sales of cattle products.
In the International segment, total livestock product sales are likely to have increased in second-quarter 2024, primarily driven by growth in both the cattle and poultry portfolios, as a result of price increases across the broader international segment.
However, revenue growth potential in the international segment from livestock product sales is expected to have been impaired by decreased sales of Zoetis’ sheep and swine products due to unfavorable market conditions.
Earnings Whispers
Our proven model does not conclusively predict 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 not 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 +1.01% as the Most Accurate Estimate currently exceeds the Zacks Consensus Estimate by 2 cents per share.
Zacks Rank: ZTS currently has a Zacks Rank #4 (Sell).
Zoetis Inc. Price and Consensus
Zoetis Inc. price-consensus-chart | Zoetis Inc. Quote
Stocks to Consider
Here are some stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Apellis Pharmaceuticals (APLS - Free Report) has an Earnings ESP of +23.06% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Apellis have plunged 34.5% year to date. APLS beat estimates in one of the last four reported quarters, missed twice and met the mark once, delivering an average negative surprise of 6.37%. APLS is scheduled to report second-quarter results on Aug 1, before the opening bell.
BioMarin Pharmaceutical (BMRN - Free Report) has an Earnings ESP of +5.06% and a Zacks Rank #3 at present.
Shares of BioMarin have lost 12.5% year to date. BMRN beat estimates in three of the last four quarters and met the mark on the remaining occasion, delivering an average earnings surprise of 11.15%. BMRN is slated to report second-quarter 2024 results on Aug 5, after market close.
Denali Therapeutics (DNLI - Free Report) has an Earnings ESP of +14.81% and a Zacks Rank #3 at present.
Denali Therapeutics’ shares have gained 12.8% in the year-to-date period. DNLI beat estimates in two of the last four quarters and missed the mark on the other two occasions, delivering an average earnings surprise of 64.51%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.