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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 scheduled to report fourth-quarter 2020 results on Feb 16, before market open.
The company flaunts an excellent earnings surprise history, surpassing expectations in the trailing four quarters by 17.74%, on average. In the last reported quarter, the company delivered an earnings surprise of 23.60%.
Shares of Zoetis have increased 11.5% in the past year compared with the industry’s growth of 8.6%.
Let's see how things are shaping up for this announcement.
What Our Model Indicates
Our proven model predicts an earnings beat for Zoetis this season. 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.
Earnings ESP: Zoetis has an Earnings ESP of +2.59%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zoetis derives a majority of revenues from a diversified product portfolio of medicines and vaccines used to treat and protect livestock and companion animals. The company reports results under two geographical operating segments — the United States and International. Solid sales from the dermatology portfolio strengthened the United States segment in the last reported quarter, a trend that most likely continued in the fourth quarter too. The company’s companion animal business has been performing well as well. The Simparica franchise, including some initial stocking of Simparica Trio, the new triple combination parasiticide, continues to drive growth for the companion animal portfolio.
Sales of livestock products increased in the third quarter owingto a return to historical buying patterns following the impact of COVID-19 in the second quarter, as well as an earlier fall cattle run compared to the same period last year.Cattle growth in the United States was partially offset by declines in both poultry and swine product portfolios. We expect the trend to continue in the fourth quarter.
For the International segment, sales of companion animal products increased in the third quarter due to the impact of COVID-19 and also drovesales across the company’s companion animal portfolio in China as a result of favorable market conditions and additional promotional and educational effort. Sales also benefited as clinics expanded their operations following less COVID-19-related restrictions. The trend is expected to have continued in the fourth quarter as well. The company’s cattle portfolio grew modestly based on a strong performance in Brazil.
In November 2020, the European Commission granted the company a marketing authorization for Librela (bedinvetmab), the first injectable monoclonal antibody (mAb) therapy approved in the European Union for monthly alleviation of osteoarthritis (OA) pain in dogs. It is an important milestone in the company’s innovative pipeline for pain management in pets. Librela is the first injectable mAb licensed for the alleviation of pain associated with OA in dogs.
During the third quarter, the company raised its guidance to reflect its current outlook for the year. The company expects adjusted earnings between $3.76 and $3.81 per share for 2020 compared with the previous guidance of $3.52-$3.68.The company raised its revenue guidance for 2020 to $6.550-$6.625 billionfrom the previous range of $6.300-$6.475 billion.
Other Stocks That Warrant a Look
Here are some biotech stocks with the right mix of elements to beat on earnings this time around:
Cara Therapeutics Inc. (CARA - Free Report) has an Earnings ESP of +34.38% and a Zacks Rank #3.
Immunovant Inc. (IMVT - Free Report) has an Earnings ESP of +4.55 % and a Zacks Rank #2.
Atea Pharmaceuticals Inc. (AVIR - Free Report) has an Earnings ESP of +279.59% and a Zacks Rank #2.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second. Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
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Zoetis (ZTS) to Report Q4 Earnings: What's in the Cards?
Zoetis Inc. (ZTS - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 16, before market open.
The company flaunts an excellent earnings surprise history, surpassing expectations in the trailing four quarters by 17.74%, on average. In the last reported quarter, the company delivered an earnings surprise of 23.60%.
Shares of Zoetis have increased 11.5% in the past year compared with the industry’s growth of 8.6%.
Let's see how things are shaping up for this announcement.
What Our Model Indicates
Our proven model predicts an earnings beat for Zoetis this season. 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.
Earnings ESP: Zoetis has an Earnings ESP of +2.59%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Consider
Zoetis derives a majority of revenues from a diversified product portfolio of medicines and vaccines used to treat and protect livestock and companion animals. The company reports results under two geographical operating segments — the United States and International. Solid sales from the dermatology portfolio strengthened the United States segment in the last reported quarter, a trend that most likely continued in the fourth quarter too. The company’s companion animal business has been performing well as well. The Simparica franchise, including some initial stocking of Simparica Trio, the new triple combination parasiticide, continues to drive growth for the companion animal portfolio.
Sales of livestock products increased in the third quarter owingto a return to historical buying patterns following the impact of COVID-19 in the second quarter, as well as an earlier fall cattle run compared to the same period last year.Cattle growth in the United States was partially offset by declines in both poultry and swine product portfolios. We expect the trend to continue in the fourth quarter.
For the International segment, sales of companion animal products increased in the third quarter due to the impact of COVID-19 and also drovesales across the company’s companion animal portfolio in China as a result of favorable market conditions and additional promotional and educational effort. Sales also benefited as clinics expanded their operations following less COVID-19-related restrictions. The trend is expected to have continued in the fourth quarter as well. The company’s cattle portfolio grew modestly based on a strong performance in Brazil.
In November 2020, the European Commission granted the company a marketing authorization for Librela (bedinvetmab), the first injectable monoclonal antibody (mAb) therapy approved in the European Union for monthly alleviation of osteoarthritis (OA) pain in dogs. It is an important milestone in the company’s innovative pipeline for pain management in pets. Librela is the first injectable mAb licensed for the alleviation of pain associated with OA in dogs.
During the third quarter, the company raised its guidance to reflect its current outlook for the year. The company expects adjusted earnings between $3.76 and $3.81 per share for 2020 compared with the previous guidance of $3.52-$3.68.The company raised its revenue guidance for 2020 to $6.550-$6.625 billionfrom the previous range of $6.300-$6.475 billion.
Other Stocks That Warrant a Look
Here are some biotech stocks with the right mix of elements to beat on earnings this time around:
Cara Therapeutics Inc. (CARA - Free Report) has an Earnings ESP of +34.38% and a Zacks Rank #3.
Immunovant Inc. (IMVT - Free Report) has an Earnings ESP of +4.55 % and a Zacks Rank #2.
Atea Pharmaceuticals Inc. (AVIR - Free Report) has an Earnings ESP of +279.59% and a Zacks Rank #2.
Zoetis Inc. Price and Consensus
Zoetis Inc. price-consensus-chart | Zoetis Inc. Quote
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second. Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>