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Zoetis Inc. (ZTS), headquartered in Parsippany, New Jersey, is a global leader in animal health. It specializes in the development, manufacturing, and distribution of medicines, vaccines, and diagnostics for pets and livestock. With a market cap of $87.15 billion, Zoetis serves veterinarians, pet owners, and livestock producers worldwide. The company is set to release its Q3 earnings before the market opens on Monday, Nov. 4.
Ahead of the event, analysts expect ZTS to report a profit of $1.46 per share, up 7.4% from $1.36 in the year-ago quarter. The company has missed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion.
Its adjusted earnings of $1.56 per share for the last quarter surpassed the consensus estimate by 4.7%. Strong U.S. segment growth, driven by increased demand for animal health products, led to Zoetis' earnings and revenue beats.
For fiscal 2024, analysts expect ZTS to report EPS of $5.83, up 9.6% from $5.32 in fiscal 2023.
ZTS stock is down 3.2% on a YTD basis, significantly underperforming the broader S&P 500 Index's ($SPX) 22.5% gains and the Health Care Select Sector SPDR Fund's (XLV) 11.7% gain over the same time frame.
Despite its weak price action, shares of Zoetis rose 6% following its Q2 earnings release on Aug. 6. The company’s revenue climbed 8.3% year over year to $2.4 billion, exceeding Wall Street’s expectations by 2.2%. Additionally, for the six months that ended June 30, 2024, Zoetis reported a 49.9% annual increase in cash flow from operating activities.
The consensus opinion on ZTS stock is bullish, with an overall “Strong Buy” rating. Of 15 analysts covering the stock, 14 advise a “Strong Buy” rating, and one indicates a “Moderate Buy.”
ZTS' average analyst price target is $221.31, suggesting a potential upside of 15.9% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) 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.
