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Zoetis' (ZTS) Q3 Earnings and Revenues Surpass Estimates
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Zoetis Inc. (ZTS - Free Report) posted third-quarter 2020 adjusted earnings of $1.10 per share (excluding one-time items), which was higher than the year-ago quarter’s earnings of 94 cents and beat the Zacks Consensus Estimate of 89 cents.
Total revenues grew 13% year over year to$1.8 billion, which beat the Zacks Consensus Estimate of $1.61 billion.
Shares of Zoetis have increased 32.5% so far this year against the industry's decline of 4.1%.
Quarterly Highlights
Zoetis reports business results under two geographical operating segments — the United States and International. It has a diverse portfolio of products for livestock and companion animals.
Revenues from the United States segment increased 18% year over year to $996 million. Sales of companion animal products in this region grew 21%, primarily owing to higher sales of the SimparicaTrio, the recently launched triple combination parasiticide for dogs. Apoquel and Cytopoint brands in the dermatology portfolio also led to this increase. Sales of livestock products increased 13% in the quarterdue to a return to historical buying patterns following the impact of COVID-19 in the second quarter of 2020. U.S. cattle growth was partially offset by modest declines in both poultry and swine product portfolios.
Revenues inthe International segment increased 6% year over year on a reported basis (up 11% operationally) to $767 million. Livestock sales were flat in the quarter.Notably, sales of swine products surged as a result of expanding herd production and beefed-up biosecurity measures in the wake of the African Swine Fever in China. Sales of companion animal products grew 17% on a reported basis as a result of favorable market conditions and additional promotional and educational efforts. The Simparica franchise, including Simparica Trio, which was recently launched in the EU, Canada and Australia, and the company’s key dermatology portfolio across both Apoquel and Cytopoint brands led to the growth. Growth in the company’s fish portfolio was driven primarily by increased market share for salmon vaccines and the acquisition of Fish Vet Group.
2020 Guidance
Zoetis raised its 2020 guidance.
The company now expects adjusted earnings of$3.76-$3.81per sharecompared with the previous guidance of $3.52-$3.68.
Revenues are now projected between $6.550 billion and $6.625 billion, raised from the previous range of $6.300-$6.475 billion.
The guidance takes into account the foreign exchange rates of late-October.
Our Take
Zoetis’ exceeded third-quarter earnings and sales estimates, driven by a strong companion animal portfolio. The company witnessed growth in livestock in the quarter, mainly due to sales growth in both the U.S. cattle market and China’s swine market.. The increase in the annual guidance was positive.
Emergent’s earnings per share estimates have increased from $6.17 to $8.42 for 2021 in the past 60 days. Shares of the company have increased 82.2% year to date.
ADC Therapeutics’ loss per share estimates have narrowed from $4.37 to $4.32 for 2020 and from $3.19 to $3.08 for 2021 in the past 60 days. Shares of the company have increased 4.1% year to date.
Alimera’sloss per share estimates have narrowed from $1.31 to 96 cents for 2020 in the past 60 days. Shares of the company have increased 4.1% year to date.
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Zoetis' (ZTS) Q3 Earnings and Revenues Surpass Estimates
Zoetis Inc. (ZTS - Free Report) posted third-quarter 2020 adjusted earnings of $1.10 per share (excluding one-time items), which was higher than the year-ago quarter’s earnings of 94 cents and beat the Zacks Consensus Estimate of 89 cents.
Total revenues grew 13% year over year to$1.8 billion, which beat the Zacks Consensus Estimate of $1.61 billion.
Shares of Zoetis have increased 32.5% so far this year against the industry's decline of 4.1%.
Quarterly Highlights
Zoetis reports business results under two geographical operating segments — the United States and International. It has a diverse portfolio of products for livestock and companion animals.
Revenues from the United States segment increased 18% year over year to $996 million. Sales of companion animal products in this region grew 21%, primarily owing to higher sales of the SimparicaTrio, the recently launched triple combination parasiticide for dogs. Apoquel and Cytopoint brands in the dermatology portfolio also led to this increase. Sales of livestock products increased 13% in the quarterdue to a return to historical buying patterns following the impact of COVID-19 in the second quarter of 2020. U.S. cattle growth was partially offset by modest declines in both poultry and swine product portfolios.
Revenues inthe International segment increased 6% year over year on a reported basis (up 11% operationally) to $767 million. Livestock sales were flat in the quarter.Notably, sales of swine products surged as a result of expanding herd production and beefed-up biosecurity measures in the wake of the African Swine Fever in China. Sales of companion animal products grew 17% on a reported basis as a result of favorable market conditions and additional promotional and educational efforts. The Simparica franchise, including Simparica Trio, which was recently launched in the EU, Canada and Australia, and the company’s key dermatology portfolio across both Apoquel and Cytopoint brands led to the growth. Growth in the company’s fish portfolio was driven primarily by increased market share for salmon vaccines and the acquisition of Fish Vet Group.
2020 Guidance
Zoetis raised its 2020 guidance.
The company now expects adjusted earnings of$3.76-$3.81per sharecompared with the previous guidance of $3.52-$3.68.
Revenues are now projected between $6.550 billion and $6.625 billion, raised from the previous range of $6.300-$6.475 billion.
The guidance takes into account the foreign exchange rates of late-October.
Our Take
Zoetis’ exceeded third-quarter earnings and sales estimates, driven by a strong companion animal portfolio. The company witnessed growth in livestock in the quarter, mainly due to sales growth in both the U.S. cattle market and China’s swine market.. The increase in the annual guidance was positive.
Zacks Rank & Stocks to Consider
Zoetis currently carries a Zacks Rank #2 (Buy).
Some top-ranked stocks in the biotech sector are Emergent BioSolutions Inc. (EBS - Free Report) , Alimera Sciences Inc. (ALIM - Free Report) and ADC Therapeutics SA (ADCT - Free Report) . While Emergent carries a Zacks Rank #1 (Strong Buy), Alimera and ADC Therapeutics carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Emergent’s earnings per share estimates have increased from $6.17 to $8.42 for 2021 in the past 60 days. Shares of the company have increased 82.2% year to date.
ADC Therapeutics’ loss per share estimates have narrowed from $4.37 to $4.32 for 2020 and from $3.19 to $3.08 for 2021 in the past 60 days. Shares of the company have increased 4.1% year to date.
Alimera’sloss per share estimates have narrowed from $1.31 to 96 cents for 2020 in the past 60 days. Shares of the company have increased 4.1% year to date.
Zoetis Inc. Price, Consensus and EPS Surprise
Zoetis Inc. price-consensus-eps-surprise-chart | Zoetis Inc. Quote
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking. Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>