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Zoetis’ earnings surprise history has been excellent so far, having surpassed expectations in each of the trailing four quarters, with an average beat of 12.29%. In the last-reported quarter, Zoetis delivered an earnings surprise of 4.17%.
Shares of Zoetis have plunged 27.4% in the year so far compared with the industry’s 22.3% decline.
Image Source: Zacks Investment Research
Let's see how things are shaping up for this announcement.
Factors to Consider
Zoetis derives a majority of its revenues from its diversified product portfolio of medicines and vaccines used to treat and protect livestock and companion animals. The company reports business results under two geographical operating segments — United States and International.
Revenues in the last-reported quarter increased year over year to $1.04 billion in the United States, a trend that most likely continued in the first quarter as well. The Zacks Consensus Estimate for ZTS’ revenues in the United States is pegged at $1.009 billion.
Zoetis’ International revenues in the last-reported quarter had increased year over year to $902 million. This trend is also expected to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for International revenues stands at $969 million.
Strong sales of the dermatology portfolio — owing to increased sales of Apoquel and Cytopoint brands — strengthened the United States segment in the last-reported quarter, a trend that most likely continued in the first quarter as well. Zoetis’ companion animal business has also been performing well, primarily owing to higher sales of Simparica Trio, a triple combination parasiticide for dogs.
In the last-reported quarter, sales of livestock products had declined year over year, a trend that most likely continued in the first quarter as well. Sales of poultry products had also declined in the last-reported quarter due to the expanded use of lower-cost alternatives for premium products, a trend that is expected to have continued in the to-be-reported quarter. Sales of cattle products were also reported to have decreased year over year due to increased generic competition, a trend that most likely continued in the first quarter as well.
In the last-reported quarter, sales of swine products had declined year over year due to pricing pressure on anti-infectives and vaccines, a trend that is expected to have continued in the to-be-reported quarter.
For the International segment, sales of companion animal products had increased in the last-reported quarter and are expected to have continued the momentum in the first quarter as well.
Why a Likely Positive Surprise?
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. 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 +0.10%. The Zacks Consensus Estimate for earnings stands at $1.22 per share while the Most Accurate Estimate is also pegged at $1.22 per share.
Here are a few other stocks you may want to consider as our model shows that these too have the right combination of elements to beat on earnings this reporting cycle.
Vertex Pharmaceuticals Incorporated (VRTX - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank of 2 at present.
In the past 30 days, estimates for Vertex’s 2022 earnings per share have increased from $14.52 to $14.56. The same for 2023 has increased from $15.31 to $15.35 in the past 30 days.
Earnings of VRTX beat estimates in each of the last four quarters, delivering a surprise of 10.01%, on average.
Clovis Oncology, Inc. has an Earnings ESP of +2.33% and a Zacks Rank #2 at present.
In the past 30 days, estimates for Clovis’ 2022 loss per share have narrowed from $1.60 to $1.59. The same for 2023 has narrowed from 92 cents to 90 cents in the past 30 days.
Earnings of CLVS beat estimates in two of the last four quarters and beat the mark on the other two occasions, delivering a surprise of 1.44%, on average.
Novavax, Inc. (NVAX - Free Report) has an Earnings ESP of +10.13% and a Zacks Rank of 3 at present.
In the past 30 days, estimates for Novavax’s 2022 earnings per share have increased from $22.84 to $22.88.
Earnings of NVAX missed estimates in each of the last four quarters, witnessing a negative surprise of 182.48%, on average.
Image: Shutterstock
Is a Beat in Store for Zoetis (ZTS) This Earnings Season?
We expect Zoetis Inc. (ZTS - Free Report) to surpass expectations when it reports first-quarter 2022 results on May 5, before market opens.
Zoetis’ earnings surprise history has been excellent so far, having surpassed expectations in each of the trailing four quarters, with an average beat of 12.29%. In the last-reported quarter, Zoetis delivered an earnings surprise of 4.17%.
Shares of Zoetis have plunged 27.4% in the year so far compared with the industry’s 22.3% decline.
Image Source: Zacks Investment Research
Let's see how things are shaping up for this announcement.
Factors to Consider
Zoetis derives a majority of its revenues from its diversified product portfolio of medicines and vaccines used to treat and protect livestock and companion animals. The company reports business results under two geographical operating segments — United States and International.
Revenues in the last-reported quarter increased year over year to $1.04 billion in the United States, a trend that most likely continued in the first quarter as well. The Zacks Consensus Estimate for ZTS’ revenues in the United States is pegged at $1.009 billion.
Zoetis’ International revenues in the last-reported quarter had increased year over year to $902 million. This trend is also expected to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for International revenues stands at $969 million.
Strong sales of the dermatology portfolio — owing to increased sales of Apoquel and Cytopoint brands — strengthened the United States segment in the last-reported quarter, a trend that most likely continued in the first quarter as well. Zoetis’ companion animal business has also been performing well, primarily owing to higher sales of Simparica Trio, a triple combination parasiticide for dogs.
In the last-reported quarter, sales of livestock products had declined year over year, a trend that most likely continued in the first quarter as well. Sales of poultry products had also declined in the last-reported quarter due to the expanded use of lower-cost alternatives for premium products, a trend that is expected to have continued in the to-be-reported quarter. Sales of cattle products were also reported to have decreased year over year due to increased generic competition, a trend that most likely continued in the first quarter as well.
In the last-reported quarter, sales of swine products had declined year over year due to pricing pressure on anti-infectives and vaccines, a trend that is expected to have continued in the to-be-reported quarter.
For the International segment, sales of companion animal products had increased in the last-reported quarter and are expected to have continued the momentum in the first quarter as well.
Why a Likely Positive Surprise?
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. 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 +0.10%. The Zacks Consensus Estimate for earnings stands at $1.22 per share while the Most Accurate Estimate is also pegged at $1.22 per share.
Zacks Rank: Zoetis has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zoetis Inc. Price and EPS Surprise
Zoetis Inc. price-eps-surprise | Zoetis Inc. Quote
Other Stocks to Consider
Here are a few other stocks you may want to consider as our model shows that these too have the right combination of elements to beat on earnings this reporting cycle.
Vertex Pharmaceuticals Incorporated (VRTX - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank of 2 at present.
In the past 30 days, estimates for Vertex’s 2022 earnings per share have increased from $14.52 to $14.56. The same for 2023 has increased from $15.31 to $15.35 in the past 30 days.
Earnings of VRTX beat estimates in each of the last four quarters, delivering a surprise of 10.01%, on average.
Clovis Oncology, Inc. has an Earnings ESP of +2.33% and a Zacks Rank #2 at present.
In the past 30 days, estimates for Clovis’ 2022 loss per share have narrowed from $1.60 to $1.59. The same for 2023 has narrowed from 92 cents to 90 cents in the past 30 days.
Earnings of CLVS beat estimates in two of the last four quarters and beat the mark on the other two occasions, delivering a surprise of 1.44%, on average.
Novavax, Inc. (NVAX - Free Report) has an Earnings ESP of +10.13% and a Zacks Rank of 3 at present.
In the past 30 days, estimates for Novavax’s 2022 earnings per share have increased from $22.84 to $22.88.
Earnings of NVAX missed estimates in each of the last four quarters, witnessing a negative surprise of 182.48%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.