Zoetis (ZTS) Up 1% Since Last Earnings Report: Can It Continue?

Core Insights - Zoetis reported Q3 2024 adjusted earnings of $1.58 per share, exceeding the Zacks Consensus Estimate of $1.46, and up from $1.36 in the same quarter last year [2] - Total revenues for the quarter reached $2.39 billion, an 11% increase year-over-year, surpassing the Zacks Consensus Estimate of $2.29 billion [2] Financial Performance - U.S. segment revenues increased 15% year-over-year to $1.35 billion, beating both the Zacks Consensus Estimate and internal estimates [4] - Companion animal product sales in the U.S. rose 18% to $1.07 billion, driven by monoclonal antibody products and key dermatology offerings [5] - Livestock product sales in the U.S. grew 5% to $278 million, primarily due to improved supply of ceftiofur [6] - International segment revenues improved 7% year-over-year to $1.021 billion, exceeding estimates [6] Product Performance - International companion animal product sales rose 7% to $541 million, supported by growth in OA pain products and dermatology products [7] - Livestock product sales internationally increased 7% to $480 million, driven by price increases and customer purchasing timing [8] Future Outlook - Zoetis raised its 2024 guidance for adjusted diluted earnings to a range of $5.86-$5.92 per share, up from the previous range of $5.78-$5.88 [9] - Expected revenues for 2024 are now between $9.2 billion and $9.3 billion, indicating operational growth of 10-11% [9] Market Position - Zoetis holds a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [12] - The company has a VGM Score of B, reflecting a balanced growth and momentum outlook [11]