Key Takeaways ZTS gains momentum from flagship drugs like Apoquel, Cytopoint, Simparica Trio and ProHeart 12. Zoetis raised its dividend payout by 16% in 2025, over the previous year. Earnings estimates for 2025 and 2026 continue to rise.Shares of Zoetis (ZTS) have risen 12.5% in a month. The company is a major player in the animal health market. The company operates in seven major product categories, namely, parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, other pharmaceutical an ...

Zoetis Inc. (NYSE:ZTS) William Blair 45th Annual Growth Stock Conference June 3, 2025 11:40 AM ET Company Participants Wetteny Joseph - CFO Conference Call Participants Brandon Vazquez - William Blair Brandon Vazquez Right. Good morning, everyone. My name is Brandon Vazquez. I am the research analyst here at William Blair that covers Zoetis. I'm required to inform you that a complete list of research disclosures of potential conflicts of interest, please visit our website at williamblair.com. So we have her ...

Zoetis (ZTS) FY Conference June 03, 2025 11:40 AM ET Speaker0 Was here at William Blair that covers Zoetis. I'm required to inform you that a complete list of research disclosures of potential conflicts of interest, please visit our website at williamblair.com. So we have here with us today this morning, the CFO of Zoetis, Wetteny Joseph. Wetteny's gonna walk us through a little bit of an intro, and then, I will lead us through a little bit of fireside chat before we go to the breakout room after this. So, ...

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Zoetis Inc. (NYSE:ZTS) Stifel 2025 Jaws & Paws Conference May 29, 2025 9:10 AM ET Company Participants Wetteny Joseph - Chief Financial Officer Conference Call Participants Jon Block - Stifel Jon Block Great. Thank you. Good morning. Jon Block with Stifel. Next up, we have Zoetis, and pleased to be joined by their CFO, Wetteny Joseph. A lot to discuss, so I'll dive right in. I might have to alter my first question just based on tariff news that never stops in the flow. But I will start with tariffs more bro ...

Summary of Zoetis (ZTS) 2025 Conference Call Company Overview - **Company**: Zoetis (ZTS) - **Date of Conference**: May 29, 2025 - **Key Speaker**: Wetteny Joseph, CFO Industry Context - **Industry**: Animal Health and Pharmaceuticals - **Key Competitors**: Elanco, Merck Key Points and Arguments Tariffs and Supply Chain - **Tariff Impact**: Tariffs are a significant concern, with Zoetis actively monitoring the situation and having multiple mitigation strategies in place [2][3][4] - **US Manufacturing**: 75% of products sold in the US are manufactured domestically, and Zoetis exports more from the US than it imports, positioning the company favorably in the context of potential tariffs [3][4] - **Intellectual Property**: 99% of Zoetis' intellectual property is based in the US, further supporting its domestic manufacturing strategy [4] Financial Performance and Guidance - **2025 Revenue Growth**: The company anticipates organic operational revenue growth of 6% to 8%, with a strong start in Q1 at 9% [13][14] - **Adjusted Net Income Growth**: Expected growth of 5% to 7% in adjusted net income for the year, with Q1 performance at 6% [18][19] - **Market Competition**: Anticipation of competitive product launches in the second half of the year, which may affect growth rates [14][15] Product Performance - **Dermatology Products**: There is a significant opportunity in the dermatology segment, with 20 million untreated dogs globally. Current treatment is only for 12 million dogs, indicating room for growth [26][28][30] - **Chronic Medications**: Some pressures were noted in the high-end chronic medication segment, particularly in February, but overall growth remained strong [21][22][23] - **Next-Gen Products**: Excitement around the next generation of long-acting pain medications, with expected launches in the next 12 to 36 months [33][34][39] Market Dynamics - **Parasiticides Market**: The Tru product line continues to perform well, with a 40% growth last year. The market for triple combination parasiticides is expanding, with Zoetis gaining market share [57][58][59] - **Alternative Channels**: Approximately 21% of US companion animal sales are through alternative channels, which are growing faster than traditional clinic sales [68][70] Margin and Cost Structure - **Operating Margins**: Expected operating margin for 2025 is around 39%, with historical growth in the bottom line outpacing the top line [60][62] - **Cost of Sales**: Inventory priced at higher costs is impacting margins, but the company expects to see improvements in the second half of the year [19][62] Strategic Initiatives - **Education and KOL Engagement**: Zoetis is focusing on educating veterinarians and leveraging key opinion leaders (KOLs) to drive product adoption and market penetration [51][52][53] - **Compliance and Convenience**: The company is seeing better compliance rates due to the convenience of alternative channels, which is expected to drive growth [29][68] Additional Important Insights - **Market Opportunities**: The company sees substantial opportunities in both existing and new product lines, particularly in the companion animal segment [23][28][30] - **Regulatory Considerations**: Ongoing regulatory processes for new products are being closely monitored, with expectations for approvals in the near future [45][46] This summary encapsulates the key discussions and insights from the Zoetis conference call, highlighting the company's strategic positioning, financial outlook, and market opportunities.

Zoetis (ZTS) FY Conference May 22, 2025 07:00 AM ET Speaker0 Hi. Good afternoon. Good evening, everyone. I'm Naveen Thi. I cover animal health, including Zoetis at BNP Paribas. Thank you for joining our second BNP Paribas Animal Health Day. And we'll have our penultimate session with Zoetis. So we previously had IDEX, CFO and fibro CFO and Elanco CEO. And today, I have the pleasure to have the Zoetis team with Weteny Joseph, Executive VP and CEO CFO. You joined Zoetis in June 2021, and you spent thirteen ye ...

Core Viewpoint - Zoetis (ZTS) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Company Performance and Outlook - The upgrade for Zoetis indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. - Zoetis is projected to earn $6.20 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 4.7% [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade of Zoetis to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

Financial Data and Key Metrics Changes - In 2024, the company achieved 11% operational revenue growth and a 15% increase in adjusted net income operationally, indicating strong financial performance [22][23]. Business Line Data and Key Metrics Changes - The innovative companion animal portfolio grew 14% operationally, with all key franchises delivering double-digit growth [23]. - The livestock portfolio also grew 5% operationally, surpassing the historic industry average [26]. Market Data and Key Metrics Changes - The dermatology franchise has helped over 25 million dogs and is projected to reach a market size of $2.5 billion by 2028, showcasing significant market potential [24]. Company Strategy and Development Direction - The company continues to focus on an omnichannel strategy, enhancing customer access through clinics, retail, and home delivery [23]. - There is an emphasis on integrating advanced technologies like generative AI into R&D processes to accelerate discovery and optimize development timelines [25]. - The strategic divestiture of certain product portfolios aligns with the focus on high-growth opportunities [26]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the portfolio and the ability to adapt to market changes, highlighting a long runway of opportunity ahead [27][28]. - The company remains committed to delivering meaningful outcomes for animals and their caretakers, reinforcing its purpose-driven approach [28]. Other Important Information - The company received conditional licensure for an avian flu vaccine for chickens, positioning it to support customers in addressing evolving threats [25]. Q&A Session Summary Question: How does the compensation committee use the compensation actually paid total compensation figures in its calculation of the CEO target total compensation award for the upcoming year? - The board considers competitive practices and performance, with 92% of the CEO's compensation based on performance incentives, both short-term and long-term [31][32].

Group 1 - Zoetis (ZTS) closed at $160.35, with a 7.9% gain over the past four weeks, and a mean price target of $202.33 indicating a 26.2% upside potential [1] - The average of 15 short-term price targets ranges from a low of $165 to a high of $244, with a standard deviation of $23.91, suggesting variability in analyst estimates [2] - Analysts show strong agreement on ZTS's ability to report better earnings than previously predicted, which supports the view of potential upside [4][11] Group 2 - The Zacks Consensus Estimate for ZTS has increased by 2.9% due to eight upward revisions and one downward revision in earnings estimates over the last 30 days [12] - ZTS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside [13] - While price targets should not be the sole basis for investment decisions, the direction implied by them can serve as a useful guide [10][13]