Animal health company Zoetis (NYSE:ZTS) will be reporting earnings this Thursday before market open. Here’s what you need to know.
Zoetis missed analysts’ revenue expectations last quarter, reporting revenues of $2.26 billion, up 2.9% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ full-year EPS guidance estimates.
Is Zoetis a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Zoetis’s revenue to grow 1.2% year on year, slowing from the 4.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Zoetis has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Zoetis’s peers in the branded pharmaceuticals segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Bristol-Myers Squibb delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 12.9%, and Corcept reported revenues up 7.3%, falling short of estimates by 1%. Bristol-Myers Squibb traded up 3.5% following the results while Corcept was also up 27.3%.
Read our full analysis of Bristol-Myers Squibb’s results here and Corcept’s results here.
Investors in the branded pharmaceuticals segment have had steady hands going into earnings, with share prices up 1.4% on average 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 $110.81 (compared to the current share price of $75.99).
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