/Zoetis%20Inc%20magnified-by%20Casimiro%20PT%20via%20Shutterstock.jpg)
Parsippany, New Jersey-based Zoetis Inc. (ZTS) discovers, develops, and commercializes animal health medicines, vaccines, and diagnostic products and services. With a market cap of $66.9 billion, Zoetis operates as the world's largest producer of medicines and vaccines for pets and livestock, with operations spanning over 100 countries in North America, Europe, and internationally.
The healthcare giant is set to announce its first-quarter results before the market opens on Tuesday, May 6. Ahead of the event, analysts expect ZTS to report an adjusted profit of $1.40 per share, up a modest 1.5% from $1.38 per share reported in the year-ago quarter. On a more positive note, ZTS has surpassed the Street’s bottom-line estimates in each of the past four quarters.
For the full fiscal 2025, its earnings are expected to come in at $6.08 per share, marking a 2.7% increase from $5.93 reported in fiscal 2024. While in fiscal 2026, its earnings are expected to surge 9.4% year-over-year to $6.65 per share.
ZTS stock prices have observed a marginal 90 bps uptick over the past 52 weeks, outperforming the Healthcare Select Sector SPDR Fund’s (XLV) 3.9% dip while notably lagging behind the S&P 500 Index’s ($SPX) 6% gains during the same time frame.
Despite delivering better-than-expected financials, Zoetis' stock prices plunged 5.2% after the release of its Q4 results on Feb. 13. Although the company’s livestock-related revenues dipped 2.6% year-over-year to $726 million, it was due to the impact of unfavorable forex translations. Meanwhile, its companion animal-related revenues observed a surge across the American and international markets, growing at 8.4% year-over-year to $1.6 billion. Zoetis’ overall topline increased 4.7% year-over-year to $2.3 billion, exceeding the Street’s expectations. Furthermore, Zoetis’ adjusted net income for the quarter soared 11.1% year-over-year to $632 million, and its adjusted EPS of $1.40 surpassed the consensus estimates by 2.2%.
During fiscal 2024, Zoetis' revenues jumped by a solid 8.3% year-over-year to $9.3 billion while its adjusted EPS increased 11.3% to $5.92. However, in fiscal 2025, Zoetis expects its revenues to range between $9.2 billion and $9.4 billion, with midpoint guidance indicating no growth in revenues. Meanwhile, its adjusted EPS guidance of $6.00 to $6.10 represents a modest 2.2% growth in earnings at the midpoint, which unsettled investor confidence.
Nonetheless, analysts remain optimistic about the stock’s long-term prospects. The consensus opinion on ZTS stock is extremely bullish, with a “Strong Buy” rating overall. Of the 16 analysts covering the stock, opinions include 14 “Strong Buys,” one “Moderate Buy,” and one “Hold.” As of writing, the stock is trading significantly below its mean price target of $206.47.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
