Zoetis Stock Down Despite Q4 Earnings & Revenues Beat Estimates

Zoetis, Inc. ZTS delivered fourth-quarter 2024 adjusted earnings (excluding one-time items) of $1.40 per share, which surpassed the Zacks Consensus Estimate of $1.37. In the year-ago quarter, the company delivered adjusted earnings of $1.24 per share.See the Zacks Earnings Calendar to stay ahead of market-making news.Total revenues grew 5% year over year to $2.32 billion in the reported quarter, which beat the Zacks Consensus Estimate of $2.30 billion. In the year-ago quarter, the company reported total revenues of $2.21 billion.ZTS’ Q4 Results in DetailZoetis derives the majority of its revenues from a diversified product portfolio of medicines and vaccines used to treat and protect livestock and companion animals. The company reports business results under two geographical operating segments — the United States and International.Revenues from the U.S. segment increased 4% year over year to $1.257 billion in the reported quarter, missing both the Zacks Consensus Estimate as well as our model estimate of $1.281 billion and $1.264 billion, respectively.Sales of companion animal products in the U.S. region jumped 7% from the prior-year quarter’s level to $1.01 billion, primarily driven by Zoetis’ monoclonal antibody products for osteoarthritis (OA) pain, Librela for dogs and Solensiafor cats, as well as its flea, tick and heartworm combination product for dogs, Simparica Trio. The uptick was also fueled by the company’s key dermatology portfolio, including Apoqueland Cytopoint.Sales of livestock products in the United States decreased 8% in the fourth quarter to $249 million. The decline was mainly due to the divestiture of the medicated feed additive product portfolio, certain water-soluble products and related assets in October 2024, which more than offset growth in the ceftiofur and Draxxinlines of injectable antibiotic products.Shares of Zoetis have lost 0.4% in the past three months compared with the industry’s 6.3% decline.Image Source: Zacks Investment ResearchRevenues in the International segment improved 6% year over year on a reported basis and 10% on an operational basis to $1.039 billion, beating the Zacks Consensus Estimate of $1.008 billion as well as our model estimate of $1.027 billion.Sales of companion animal products rose 11% on a reported basis and 13% on an operational basis to $562 million, driven by growth in several key products. These included OA pain products, Librela for dogs and Solensia for cats, dermatology products like Apoquel and Cytopoint, as well as Zoetis’ parasiticide products, such as Simparica and the Simparica Trio.Livestock product sales were flat year over year on a reported basis and grew 6% operationally to $477 million. Growth in both the cattle and poultry portfolios was driven largely by price increases across the broader international segment.ZTS’ Full-Year 2024 ResultsZoetis posted 2024 adjusted earnings of $5.92 per share (excluding one-time items), which increased from the year-ago figure of $5.32 and beat the Zacks Consensus Estimate of $5.89.Total revenues grew 8% year over year to $9.26 billion, which beat the Zacks Consensus Estimate of $9.24 billion.ZTS’ 2025 GuidanceZoetis issued guidance for 2025. It expects adjusted earnings in the range of $6.00-$6.10 per share in 2025.Revenues are projected between $9.225 billion and $9.375 billion, representing an expected operational growth of 2-4%.The declining stock price in the pre-market hours is likely influenced by the weak sales and profit forecast for 2025.ZTS’ Zacks Rank and Stocks to ConsiderZoetis currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the sector are Castle Biosciences CSTL, BioMarin Pharmaceutical BMRN and Alnylam Pharmaceuticals ALNY, carrying a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.In the past 30 days, Castle Biosciences’ earnings estimates for 2024 have increased from 34 cents to 45 cents per share. During the same timeframe, the loss per share for 2025 has improved from $1.84 to $1.51. In the past three months, shares of Castle Biosciences have plunged 16.4%.CSTL’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 172.72%.In the past 30 days, estimates for BioMarin Pharmaceutical’s 2024 earnings per share have increased from $3.28 to $3.29. Estimates for 2025 earnings per share have decreased from $4.02 to $4.01 during the same timeframe. In the past three months, BioMarin Pharmaceutical shares have lost 4%.BMRN’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 28.7%.In the past 30 days, estimates for Alnylam Pharmaceuticals’ 2024 loss per share have remained constant at 39 cents. The estimate for 2025 earnings per share is currently pegged at 41 cents. In the past three months, shares of Alnylam Pharmaceuticals have gained 1.9%.ALNY’s earnings beat estimates in three of the trailing four quarters and matched once, delivering an average surprise of 65.67%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alnylam Pharmaceuticals, Inc. (ALNY): Free Stock Analysis Report BioMarin Pharmaceutical Inc. (BMRN): Free Stock Analysis Report Zoetis Inc. (ZTS): Free Stock Analysis Report Castle Biosciences, Inc. (CSTL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks