Zoetis Expects EPS Growth Amidst Stock Price Decline

Zoetis Inc. anticipates a positive earnings report with profits expected to rise 11.3%. This could strengthen investor confidence in ZTS, despite a recent stock price dip reflecting past performance.

Date: 17-01-2025

AI Rating: 7

Earnings Per Share (EPS)
Zoetis Inc. is projecting a non-GAAP profit of $1.38 per share for the fourth quarter, which represents an 11.3% year-over-year increase from $1.24 per share. For the full fiscal year 2024, the adjusted EPS is expected to rise to $5.91 from $5.32 in fiscal 2023, indicating an 11.1% growth. Additionally, forecasts for fiscal 2025 suggest a further rise to $6.38 per share, nearly 8% higher than the previous year.
Revenue Growth
The company reported a robust 11% year-on-year revenue growth for Q3, reaching $2.4 billion. This growth is buoyed by a 15% increase in U.S. revenues driven by demand for companion animal products, and a 7% increase in international sales of livestock products.
Net Income
Zoetis also showcased a solid performance with an adjusted net income of $716 million, marking a significant growth of 13.8% year-over-year.
Profit Margins
The report highlights an impressive adjusted EPS for Q3 at $1.58, which was 8.2% above analysts’ estimates, indicating strong profitability factors and margins for the company.
Future Outlook
Analysts have a strongly bullish consensus on ZTS stock, with an average price target of $216.53, suggesting a potential upside of 27.8% from current levels. Despite concerns over a past stock price dip following better-than-expected results, the overall sentiment reflects potential positive movement in stock valuation attracted by growth metrics.

Stocks: ZTS