Zoetis (ZTS) Q3 Earnings & Sales Beat Estimate; 2017 View Up
Florham Park, NJ-based Zoetis Inc. ZTS is one of the leading global animal health companies focused on the discovery, development, manufacture and commercialization of animal health medicines and vaccines, with a focus on both livestock and companion animals. The company came into existence following Pfizer’s decision to spin off its animal health business in 2013.
Zoetis’ diversified portfolio of products for livestock and companion animals should continue to drive top-line growth at the company. The company’s top line should benefit from the addition of products acquired from Abbott Laboratories (February 2015), Pharma (November 2015), Nexvet (July 2017) as well as from the performance of Apoquel and other key brands. In this scenario, investor focus remains on top-and bottom-line numbers.
Zoetis’ track record has been impressive with the company beating earnings estimates consistently. In fact, Zoetis’ earnings surpassed expectations in each of the last four quarters, with an average positive surprise of 6.98%.
Currently, Zoetis has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings In-line: Zoetis reported an earnings per share of 65 cents beating the Zacks Consensus Estimate of 63 cents in third-quarter 2017.
Revenues Beat: Zoetis posted revenues of $1.35 billion surpassing the Zacks consensus estimate of $1.32 billion.
Key Stats: The company completed the acquisition of Nexvet Biopharma plc in July 2017, which develops monoclonal antibody therapies for management of chronic pain and other therapeutic areas in companion animals. With this acquisition, Zoetis strengthens its monoclonal antibodies pipeline. In August, Zoetis received approval for swine vaccine, Suvaxyn, in Europe and Simparcia was approved in Japan in September. Zoetis also expanded its poultry diagnostics products to European markets during the quarter.
2017 Outlook Upgraded: Zoetis increased its outlook for 2017. In 2017, the company expects earnings in the range of $2.34 to $2.39 per share on revenues of $5.225 billion and $5.275 billion. The Zacks Consensus Estimate for earnings is $2.34 per share on revenues of $5.21 billion.
Share Price Impact: Shares of the company were inactive in-pre-market trading.
Check back later for our full write up on this ZTS earnings report later!
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