Zoetis Gears Up to Report Q3 Earnings: What's in the Offing?

Core Viewpoint - Zoetis, Inc. is anticipated to exceed revenue and earnings estimates for Q3 2024, with revenues expected at $2.29 billion and earnings at $1.46 per share, as reported on November 4 [1][10]. Revenue Breakdown - The company generates most of its revenue from a diverse portfolio of veterinary medicines and vaccines for livestock and companion animals, with additional revenue from non-pharmaceutical categories like nutritional products and precision animal health services [2]. - In the United States segment, revenues are projected to rise to $1.27 billion, driven by increased sales of companion animal products, while the model estimate is slightly lower at $1.24 billion [3]. - The International segment is also expected to see revenue growth, estimated at $996.4 million, with the model estimate at $1.02 billion, primarily due to higher sales of companion animal products [4]. Product Performance - Sales of companion animal products, particularly monoclonal antibodies for osteoarthritis pain (Librela for dogs and Solensia for cats) and the Simparica Trio flea, tick, and heartworm product, are expected to significantly contribute to revenue growth in both segments [4][5]. - Key dermatology products like Apoquel and Cytopoint are also anticipated to support growth in these segments [5]. - The FDA's approval of Apoquel Chewable tablets for allergic dermatitis in dogs is expected to boost sales in the upcoming quarter [6]. Livestock Products - Livestock product sales in the United States are likely to increase, driven by higher sales of cattle and swine products, while the International segment is expected to see growth in cattle and poultry portfolios due to price increases [7]. Earnings Surprise History - Zoetis has a positive earnings surprise history, surpassing estimates in three of the last four quarters, with an average surprise of 0.42% [8]. Earnings Prediction - The company has an Earnings ESP of +0.69%, indicating a likelihood of an earnings beat, with the most accurate estimate at $1.47 per share [10].