Zoetis Gears Up to Report Q3 Earnings: Here's What to Expect

Core Insights - Zoetis, Inc. (ZTS) is anticipated to exceed expectations in its third-quarter 2025 earnings report, scheduled for November 4, 2025, with revenue estimates at $2.41 billion and earnings per share (EPS) at $1.62 [1][5] Group 1: Revenue Sources - The company generates most of its revenue from a diverse portfolio of veterinary medicines and vaccines for livestock and companion animals, with additional income from non-pharmaceutical categories such as nutritional products and precision animal health services [2] - Revenue from the U.S. segment is projected to increase, primarily due to rising sales of companion animal products, with estimates at $1.34 billion according to Zacks Consensus and $1.38 billion based on internal models [3] - The International segment is also expected to see revenue growth, driven by higher sales of companion animal products, with estimates of $1.04 billion from Zacks and $1.03 billion from internal models [4] Group 2: Product Performance - Companion animal products, particularly Simparica Trio, Apoquel, and Cytopoint, are expected to significantly contribute to revenue growth in both U.S. and International segments [5][7] - However, sales of monoclonal antibody products for osteoarthritis, Librela and Solensia, are likely to decline in the U.S. due to concerns over side effects [8] - The FDA's recent approval of a new indication for Simparica Trio is expected to further enhance sales by preventing flea tapeworm infections [9] Group 3: Livestock Products - Livestock product sales in both U.S. and International segments are anticipated to decline due to the divestiture of certain product lines, including medicated feed additives and water-soluble products [10] Group 4: Earnings Surprise History - Zoetis has a strong earnings surprise history, having surpassed estimates in the last four quarters with an average surprise of 6.19%, including an 8.64% surprise in the most recent quarter [11][12] Group 5: Earnings Prediction - The company's earnings model indicates a likely earnings beat, supported by a positive Earnings ESP of +0.32% and a Zacks Rank of 3 [13]