Zoetis Gears Up to Report Q1 Earnings: Here's What to Expect

Zoetis, Inc. ZTS is slated to report its first-quarter 2025 earnings on May 6, 2025, before the opening bell.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $2.19 billion. The consensus mark for earnings is pinned at $1.40 per share. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Let's see how things might have shaped up for Zoetis in the soon-to-be-reported quarter.

Factors to Consider Regarding ZTS’ Q1 Earnings

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.

Zoetis reports business results under two geographical operating segments — the United States and International.

First-quarter revenues in the United States segment are likely to have increased from the year-ago quarter, primarily driven by the rising sales of Zoetis’ companion animal products. The Zacks Consensus Estimate for revenues generated from this segment is pegged at $1.19 billion, while our model estimate for the same is pinned at $1.17 billion.

Revenues from the International segment are expected to have also increased in the to-be-reported quarter due to higher companion animal product sales. The Zacks Consensus Estimate for revenues generated from this segment is pegged at $0.99 billion, while our model estimate for the same is pinned at $1.01 billion.

Year to date, shares of Zoetis have lost 5.8% compared with the industry’s 4% decline.

Companion animal products sales, particularly its monoclonal antibody products for osteoarthritis pain (Librela for dogs and Solensia for cats), along with its flea, tick and heartworm combination product for dogs, Simparica Trio, are expected to have driven revenues in both the United States and International segments in the to-be-reported quarter. Zoestis’ Key dermatology products, including Apoquel and Cytopoint, are expected to have contributed to growth in these segments as well.

Apoquel is also approved as the first and only chewable treatment in the United States for controlling pruritus related to allergic dermatitis and control of atopic dermatitis in dogs at least 12 months of age. The drug’s expanded label has been contributing to the sales.

Around mid-April, the FDA approved a new indication for Zoetis’ Simparica Trio to prevent flea tapeworm infections by targeting and killing vector fleas in treated dogs. With this approval, the triple combo drug is now the only canine combination parasiticide indicated to prevent flea tapeworm infections at the source by eliminating carrier fleas before they can transmit the parasite. The label expansion is expected to further boost sales in the quarters ahead.

Zoetis’ livestock product sales in the United States are expected to have declined in the first quarter, mainly due to the divestiture of the medicated feed additive product portfolio, certain water-soluble products and related assets in October 2024.

In the International segment, total livestock product sales are expected to have risen in first-quarter 2025, primarily driven by growth in both the cattle and poultry portfolios, largely driven by price increases across the broader international segment.

ZTS Earnings Surprise History

Zoetis has an impeccable surprise history so far. The bottom line surpassed estimates in each of the trailing four quarters, delivering an average surprise of 4.53%. In the last reported quarter, the company delivered an earnings surprise of 2.19%.

Earnings Whispers for ZTS

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, which is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: ZTS has an Earnings ESP of -1.15% as the Most Accurate Estimate of $1.38 per share is lower than the Zacks Consensus Estimate of $1.40 per share.

Zacks Rank: Zoetis currently carries a Zacks Rank #3.

Zoetis Inc. Price, Consensus and EPS Surprise

Zoetis Inc. price-consensus-eps-surprise-chart | Zoetis Inc. Quote

Stocks to Consider

Here are some stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

argenx ARGX has an Earnings ESP of +10.92% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

argenx stock has neither lost nor gained year to date. ARGX beat on earnings in two of the last four quarters and missed in the other two, delivering an average surprise of 345.11%.

CytomX Therapeutics CTMX has an Earnings ESP of +38.89% and a Zacks Rank #2 at present.

CytomX Therapeutics shares have plunged 31.1% year to date. CTMX beat on earnings in three of the trailing four quarters and missed in the other one, delivering an average surprise of 180.70%.

Novavax NVAX has an Earnings ESP of +495.75% and a Zacks Rank #3 at present.

Shares of Novavax have lost 17% year to date. NVAX’s earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average negative surprise of 0.48%.

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This article originally published on Zacks Investment Research (zacks.com).

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