What To Expect From Zoetis's (ZTS) Q3 Earnings

Animal health company Zoetis (NYSE:ZTS) will be reporting results this Tuesday morning. Here’s what to look for.

Zoetis beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $2.46 billion, up 4.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ revenue estimates.

Is Zoetis a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Zoetis’s revenue to be flat year on year at $2.41 billion, slowing from the 11% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.62 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zoetis has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.5% on average.

Looking at Zoetis’s peers in the branded pharmaceuticals segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Eli Lilly delivered year-on-year revenue growth of 53.9%, beating analysts’ expectations by 9.6%, and Bristol-Myers Squibb reported revenues up 2.9%, topping estimates by 3.7%. Eli Lilly traded up 6% following the results while Bristol-Myers Squibb was also up 8.1%.

Read our full analysis of Eli Lilly’s results here and Bristol-Myers Squibb’s results here.

Investors in the branded pharmaceuticals segment have had steady hands going into earnings, with share prices flat over the last month. Zoetis’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $187.70 (compared to the current share price of $144.09).

P.S. In tech investing, "Gorillas" are the rare companies that dominate their markets—like Microsoft and Apple did decades ago. Today, the next Gorilla is emerging in AI-powered enterprise software. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.