Zoetis, Inc. ZTS is expected to beat estimates when it reports its fourth-quarter 2024 results on Feb. 13, before the opening bell.

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The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $2.31 billion. The consensus mark for earnings is pinned at $1.38 per share.

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

Factors to Consider Regarding ZTS’ Q4 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.

Fourth-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 $1.28 billion, while our model estimate for the same is pinned at $1.26 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 $1 billion, while our model estimate for the same is pinned at $1.03 billion.

In the past three months, shares of Zoetis have lost 2.7% compared with the industry’s 8.8% decline.

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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. This updated indication has been contributing to the sales. Zoetis recently revised the U.S. label for Librela after submitting a supplement to the FDA. This update reflects post-approval data gathered since Librela’s launch over a year ago. The company continues to stand by Librela’s safety and effectiveness and will immediately implement the updated label as part of its ongoing commitment to supporting veterinarians and pet owners.

Zoetis’ livestock product sales in the United States are likely to have increased in the fourth quarter as well, mainly driven by higher sales ofcattle and swine products.

In the International segment, total livestock product sales are expected to have risen in fourth-quarter 2024, 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 encouraging surprise history so far. The bottom line surpassed estimates in three of the trailing four quarters and missed on the remaining occasion, delivering an average surprise of 2.29%. In the last reported quarter, the company delivered an earnings surprise of 8.22%.

Earnings Whispers for ZTS

Our proven model predicts 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 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 +1.25% as the Most Accurate Estimate of $1.40 per share exceeds the Zacks Consensus Estimate of $1.38.

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

Zoetis Inc. Price and Consensus

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

Other Stocks to Consider

Mirum Pharmaceuticals MIRM has an Earnings ESP of +16.08% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of MIRM have surged 22.7% in the past three months. Mirum beat on earnings in one of the trailing four quarters while missing the same in the remaining three occasions, delivering an average negative surprise of 26.03%.

Sarepta Therapeutics SRPT has an Earnings ESP of +6.40% and a Zacks Rank #2 at present.

Shares of SRPT have lost 5.1% in the past three months. Sarepta beat on earnings in each of the trailing four quarters, the average surprise being 981.21%.

Exelixis, Inc. EXEL has an Earnings ESP of +3.54% and a Zacks Rank #3 at present.

Shares of EXEL have lost 7.5% in the past three months. Exelixis’ earnings outpaced estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 26.52%. 

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