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New Jersey-based Zoetis Inc. (ZTS) is the leading animal healthcare company, focusing on livestock and companion animals across various product categories, including vaccines and diagnostics. Its market cap currently stands at $82.5 billion. Zoetis is scheduled to release its fiscal 2024 Q2 earnings results on Tuesday, Aug. 6.
Ahead of the event, analysts expect Zoetis to report a profit of $1.49 per share, up 5.7% from $1.41 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in three of the last four quarters while missing on one occasion.
Zoetis’s EPS of $1.38 for the last reported quarter improved 5.3% year over year and surpassed the consensus estimate by 3%, driven by its robust portfolio growth.
Over the longer term, analysts expect Zoetis to report an EPS of $5.76 in fiscal 2024, up 8.3% from $5.32 in fiscal year 2023. However, its fiscal 2025 EPS is projected to rise 9.7% annually to $6.32.
Over the past 52 weeks, ZTS stock has declined 2.3%, lagging behind the broader S&P 500 Index's ($SPX) 22.5% gains and the S&P 500 Healthcare Sector SPDR’s (XLV) 9.1% returns over the same time frame.
Zoetis' poor performance over the past year could be linked to macroeconomic headwinds and reports linking its arthritis treatment to pet illnesses and deaths.
Despite challenges, Zoetis continues to focus on innovation and global expansion, evidenced by the approval of its drugs in multiple countries. The company’s shares rose 5.5% on May 2 following the release of its Q1 earnings report that exceeded Wall Street’s forecasts. For 2024, Zoetis anticipates adjusted EPS of $5.71 to $5.81 and revenue between $9.1 billion and $9.2 billion.
Zoetis stock currently has a consensus rating of "Strong Buy." Out of 13 analysts covering the stock, 12 suggest a “Strong Buy,” and one analyst recommends a “Moderate Buy.” The average price target for Zoetis is $213.75, indicating a potential upside of 19.2% from the current price levels.
On the date of publication, Kritika Sarmah 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.
