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Zoetis (ZTS) to Report Q3 Earnings: Is a Beat in Store?
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Zoetis Inc. (ZTS - Free Report) will report third-quarter 2022 results on Nov 3, before market open.
Zoetis’ earnings surprise history has been decent so far, having surpassed expectations in three of the trailing four quarters, will missing out on one, with an average of 6.09%. In the last reported quarter, Zoetis reported a negative earnings surprise of 1.64%.
Shares of Zoetis have fallen 36.9% in the year-to-date period, compared to the industry’s 27.9% decline.
Image Source: Zacks Investment Research
Let's see how things have shaped up for this announcement.
Factors to Consider
The veterinary drugmaker derives most of its revenues from a diversified product portfolio of medicines and vaccines used to treat and protect livestock and companion animals. Zoetis’ remaining revenues are derived from its non-pharmaceutical product categories, such as nutritional and agribusiness and products and services in biodevices, genetic tests and precision animal health.
The company reports business results under two geographical operating segments — the United States and International.
In the last reported quarter, revenues in the United States segment were up 9% year over year. The trend is likely to have continued in the third quarter as well. The Zacks Consensus Estimate for revenues in the United States is pegged at $1.41 billion.
Zoetis’ international revenues in the last reported quarter increased 2% year over year. This trend is also expected to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for international revenues is pegged at $952 million.
Under both U.S and international operating segments, the company reported strong growth across its key dermatology portfolio in the last reported quarter, driven by the increased sales of Apoquel and Cytopoint brands. The trend is anticipated to have continued in the to-be-reported quarter. Zoetis’ companion animal business has also been performing well, primarily owing to higher sales of Simparica Trio, a triple combination parasiticide for dogs, and the recent launches of its mAb therapies, Librela and Solensia.
In the last reported quarter, sales of livestock products declined year over year, a trend that most likely continued in the third quarter. Sales of cattle products declined year over year due to generic competition, a trend that most likely continued in the third quarter. Sales of poultry products also declined in the last reported quarter due to the expanded use of lower-cost alternatives for premium products. The trend is expected to have continued in the to-be-reported quarter. In the last reported quarter, sales of swine products 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.
Earnings Whispers
Our proven model predicts an earnings beat for Zoetis this time around. 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. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: Zoetis has an Earnings ESP of +0.07%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Zoetis currently carries a Zacks Rank #3 (Hold).
Here are some other stocks in the same sector worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Jazz Pharmaceuticals (JAZZ - Free Report) has an Earnings ESP of +2.12% and a Zacks Rank of 2.
Shares of Jazz have returned 13% in the year-to-date period. Earnings of JAZZ beat earnings estimate in three of the last four quarters, missing the same in one by 2 cents. The company has an average earnings surprise of 10.94%
Immunogen has an Earnings ESP of +4.39% and a Zacks Rank of 3.
Shares of Immunogen have declined 18.3% in the year-to-date period. Earnings of IMGN beat earnings estimates in three the last four quarters, missing the same in one. The company has an average earnings surprise of 13.53%.
Ionis Pharmaceuticals (IONS - Free Report) has an Earnings ESP of +7.03% and a Zacks Rank of 3.
Shares of Ionis Pharmaceuticals have returned 46.6% year to date. Earnings of IONS beat estimates in two of the last four quarters and missed the mark on the other two occasions, witnessing a surprise of 19.47%, on average.
Image: Shutterstock
Zoetis (ZTS) to Report Q3 Earnings: Is a Beat in Store?
Zoetis Inc. (ZTS - Free Report) will report third-quarter 2022 results on Nov 3, before market open.
Zoetis’ earnings surprise history has been decent so far, having surpassed expectations in three of the trailing four quarters, will missing out on one, with an average of 6.09%. In the last reported quarter, Zoetis reported a negative earnings surprise of 1.64%.
Shares of Zoetis have fallen 36.9% in the year-to-date period, compared to the industry’s 27.9% decline.
Image Source: Zacks Investment Research
Let's see how things have shaped up for this announcement.
Factors to Consider
The veterinary drugmaker derives most of its revenues from a diversified product portfolio of medicines and vaccines used to treat and protect livestock and companion animals. Zoetis’ remaining revenues are derived from its non-pharmaceutical product categories, such as nutritional and agribusiness and products and services in biodevices, genetic tests and precision animal health.
The company reports business results under two geographical operating segments — the United States and International.
In the last reported quarter, revenues in the United States segment were up 9% year over year. The trend is likely to have continued in the third quarter as well. The Zacks Consensus Estimate for revenues in the United States is pegged at $1.41 billion.
Zoetis’ international revenues in the last reported quarter increased 2% year over year. This trend is also expected to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for international revenues is pegged at $952 million.
Under both U.S and international operating segments, the company reported strong growth across its key dermatology portfolio in the last reported quarter, driven by the increased sales of Apoquel and Cytopoint brands. The trend is anticipated to have continued in the to-be-reported quarter. Zoetis’ companion animal business has also been performing well, primarily owing to higher sales of Simparica Trio, a triple combination parasiticide for dogs, and the recent launches of its mAb therapies, Librela and Solensia.
In the last reported quarter, sales of livestock products declined year over year, a trend that most likely continued in the third quarter. Sales of cattle products declined year over year due to generic competition, a trend that most likely continued in the third quarter. Sales of poultry products also declined in the last reported quarter due to the expanded use of lower-cost alternatives for premium products. The trend is expected to have continued in the to-be-reported quarter. In the last reported quarter, sales of swine products 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.
Earnings Whispers
Our proven model predicts an earnings beat for Zoetis this time around. 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. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: Zoetis has an Earnings ESP of +0.07%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Zoetis currently carries a Zacks Rank #3 (Hold).
Zoetis Inc. Price, Consensus and EPS Surprise
Zoetis Inc. price-consensus-eps-surprise-chart | Zoetis Inc. Quote
Other Stocks to Consider
Here are some other stocks in the same sector worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Jazz Pharmaceuticals (JAZZ - Free Report) has an Earnings ESP of +2.12% and a Zacks Rank of 2.
Shares of Jazz have returned 13% in the year-to-date period. Earnings of JAZZ beat earnings estimate in three of the last four quarters, missing the same in one by 2 cents. The company has an average earnings surprise of 10.94%
Immunogen has an Earnings ESP of +4.39% and a Zacks Rank of 3.
Shares of Immunogen have declined 18.3% in the year-to-date period. Earnings of IMGN beat earnings estimates in three the last four quarters, missing the same in one. The company has an average earnings surprise of 13.53%.
Ionis Pharmaceuticals (IONS - Free Report) has an Earnings ESP of +7.03% and a Zacks Rank of 3.
Shares of Ionis Pharmaceuticals have returned 46.6% year to date. Earnings of IONS beat estimates in two of the last four quarters and missed the mark on the other two occasions, witnessing a surprise of 19.47%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.