Zoetis Gears Up to Report Q1 Earnings: Here's What to Expect

Core Viewpoint - Zoetis, Inc. is expected to report its first-quarter 2025 earnings on May 6, 2025, with revenue estimates at $2.19 billion and earnings at $1.40 per share [1]. Group 1: Revenue Sources - The company generates most of its revenues from a diversified portfolio of veterinary medicines and vaccines for livestock and companion animals, with additional revenues from non-pharmaceutical categories like nutritional products and precision animal health services [2]. - In the United States segment, revenues are projected to increase to $1.19 billion, driven by rising sales of companion animal products, with model estimates at $1.17 billion [3]. - The International segment is also expected to see revenue growth, estimated at $0.99 billion, with model estimates at $1.01 billion, primarily due to higher sales of companion animal products [4]. Group 2: Product Performance - Sales of companion animal products, particularly monoclonal antibodies for osteoarthritis pain (Librela for dogs and Solensia for cats), and the flea, tick, and heartworm combination product Simparica Trio, are anticipated to drive revenue growth in both segments [5]. - The FDA recently approved a new indication for Simparica Trio, enhancing its market position as the only canine combination parasiticide indicated to prevent flea tapeworm infections, which is expected to boost future sales [7]. - Livestock product sales in the U.S. are expected to decline due to the divestiture of certain product lines, while international livestock sales are projected to rise, driven by price increases in cattle and poultry portfolios [8]. Group 3: Earnings Surprise History - Zoetis has a strong earnings surprise history, surpassing estimates in the last four quarters with an average surprise of 4.53%, including a 2.19% surprise in the last reported quarter [10]. - The current Earnings ESP for Zoetis is -1.15%, indicating that the most accurate estimate of $1.38 per share is lower than the consensus estimate of $1.40 per share [12].