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Zoetis (ZTS) to Report Q4 Earnings: What's in the Cards?
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Zoetis Inc. (ZTS - Free Report) will report fourth-quarter and full-year 2022 results on Feb 14, 2023, before market open.
Zoetis’ earnings surprise history has been decent so far, having surpassed expectations in two of the trailing four quarters, missing out the other two with an average of 2.08%. In the last reported quarter, Zoetis reported a negative earnings surprise of 2.42%.
Shares of Zoetis have fallen 19.2% in the past year, compared with the industry’s 14.3% 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 2% year over year. The trend is likely to have continued in the fourth quarter as well. The Zacks Consensus Estimate for revenues in the United States is pegged at $1.08 billion.
Zoetis’ international revenues in the last reported quarter decreased by 2% year over year on a reported basis. This trend is also expected to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for international revenues is pegged at $907 million.
Under both the U.S. and international operating segments, the company reported 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.
However, livestock product sales and sales of cattle products declined year over year, a trend that most likely continued in the fourth quarter. Sales of poultry products also declined in the last reported quarter in the United States due to the expanded use of lower-cost alternatives for premium products, but experienced growth in the International segment because ofmarket growth and demand generation efforts. 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 increased competition for vaccines, a trend that is expected to have continued in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively predict 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. But that is not the case here.
Earnings ESP: Zoetis’ Earnings ESP is -0.87% as the Zacks Consensus Estimate of $1.15 is higher than the Most Accurate Estimate of $1.14 per share. 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.
Other Stocks to Consider
Here are some other stocks in the same medical-drug market worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Assertio’s stock has risen 84.6% in the past year. Assertio beat earnings estimates in three of the last four quarters while missing the mark on one occasion. ASRT has an earnings surprise of 54.96% on average.
FibroGen (FGEN - Free Report) has an Earnings ESP of +1.16% and a Zacks Rank #3.
FibroGen’s stock has risen 55.8% in the past year. FibroGen beat earnings estimates in two of the last four quarters while missing the mark on two occasions. FGEN has a four-quarter negative earnings surprise of 23.81% on average.
EQRx has an Earnings ESP of +5.26% and a Zacks Rank #2.
EQRx’s stock has plunged 30.7% in the past year. EQRx beat earnings estimates in all the last three reported quarters. EQRX has an earnings surprise of 22.10% on average.
Image: Shutterstock
Zoetis (ZTS) to Report Q4 Earnings: What's in the Cards?
Zoetis Inc. (ZTS - Free Report) will report fourth-quarter and full-year 2022 results on Feb 14, 2023, before market open.
Zoetis’ earnings surprise history has been decent so far, having surpassed expectations in two of the trailing four quarters, missing out the other two with an average of 2.08%. In the last reported quarter, Zoetis reported a negative earnings surprise of 2.42%.
Shares of Zoetis have fallen 19.2% in the past year, compared with the industry’s 14.3% 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 2% year over year. The trend is likely to have continued in the fourth quarter as well. The Zacks Consensus Estimate for revenues in the United States is pegged at $1.08 billion.
Zoetis’ international revenues in the last reported quarter decreased by 2% year over year on a reported basis. This trend is also expected to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for international revenues is pegged at $907 million.
Under both the U.S. and international operating segments, the company reported 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.
However, livestock product sales and sales of cattle products declined year over year, a trend that most likely continued in the fourth quarter. Sales of poultry products also declined in the last reported quarter in the United States due to the expanded use of lower-cost alternatives for premium products, but experienced growth in the International segment because ofmarket growth and demand generation efforts. 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 increased competition for vaccines, a trend that is expected to have continued in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively predict 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. But that is not the case here.
Earnings ESP: Zoetis’ Earnings ESP is -0.87% as the Zacks Consensus Estimate of $1.15 is higher than the Most Accurate Estimate of $1.14 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zoetis Inc. Price, Consensus and EPS Surprise
Zoetis Inc. price-consensus-eps-surprise-chart | Zoetis Inc. Quote
Zacks Rank: Zoetis currently carries a Zacks Rank #3.
Other Stocks to Consider
Here are some other stocks in the same medical-drug market worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Assertio (ASRT - Free Report) has an Earnings ESP of +10.21% and a Zacks Rank #3. You can the complete list of today’s Zacks #1 Rank stocks here.
Assertio’s stock has risen 84.6% in the past year. Assertio beat earnings estimates in three of the last four quarters while missing the mark on one occasion. ASRT has an earnings surprise of 54.96% on average.
FibroGen (FGEN - Free Report) has an Earnings ESP of +1.16% and a Zacks Rank #3.
FibroGen’s stock has risen 55.8% in the past year. FibroGen beat earnings estimates in two of the last four quarters while missing the mark on two occasions. FGEN has a four-quarter negative earnings surprise of 23.81% on average.
EQRx has an Earnings ESP of +5.26% and a Zacks Rank #2.
EQRx’s stock has plunged 30.7% in the past year. EQRx beat earnings estimates in all the last three reported quarters. EQRX has an earnings surprise of 22.10% on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.