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Zoetis (ZTS) Tops on Earnings in Q4, Updates View

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Florham Park, NJ-based Zoetis Inc. (ZTS - Free Report) is one of the leading global animal health companies focused on the discovery, development, manufacture and commercialization of animal health medicines and vaccines, with a focus on both livestock and companion animals. The company came into existence following Pfizer’s decision to spin off its animal health business in 2013.

Zoetis’ diversified portfolio of products for livestock and companion animals should continue to drive top-line growth at the company. The company’s top line should benefit from the addition of products acquired from Abbott Laboratories (Feb 2015), Pharmaq (Nov 2015) as well as from the performance of Apoquel and other key brands. In this scenario, investor focus remains on top-and bottom-line numbers.

Zoetis’ track record has been impressive with the company beating earnings estimates consistently. In fact, Zoetis’ earnings surpassed expectations in each of the last four quarters, with an average positive surprise of 12.9%.

Currently, Zoetis has a Zacks Rank #4 (Sell), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Once again, Zoetis has surpassed earnings estimates. Zoetis beat on fourth-quarter 2016 earnings. The company reported EPS of 47 cents while our consensus called for EPS of 45 cents.
 

Zoetis Inc. Price and EPS Surprise

 

Zoetis Inc. Price and EPS Surprise | Zoetis Inc. Quote

Revenues:  Zoetis posted revenues of $1.28 billion in line with our consensus estimate.

2017 Outlook Updated: Zoetis updated its outlook for 2017. In 2017, the company expects earnings in the range of $2.26 to $2.36 per share (old guidance: $2.28 to $2.38 per share) on revenues of $5.10 billion and $5.225 billion (old guidance: $5.15 billion and $5.275 billion). The Zacks Consensus Estimate for earnings is $2.33 per share on revenues of $5.18 billion.

Check back later for our full write up on this ZTS earnings report later!

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