Should You Buy Zoetis Before Feb. 12?

Core Viewpoint - Zoetis is set to release its fourth quarter and full year 2025 earnings on February 12, with investor sentiment hinging on the alignment of guidance updates with current expectations [1][5]. Earnings Expectations - The sell-side forecasts predict revenue of $2.36 billion and earnings of approximately $1.40 per share, indicating a year-over-year revenue growth of 1.9% and flat earnings [5]. - Historically, Zoetis has beaten earnings expectations in the last four quarters, and the lowered expectations from the previous quarter may create an opportunity for a positive surprise [6]. Investor Sentiment and Risks - Despite the potential for a positive earnings surprise, there remains a risk that investors may react negatively to the company's outlook, especially if negative macro trends affecting the livestock business persist [7][8]. - Following the previous earnings release in November, Zoetis shares have declined by 11%, indicating lingering investor concerns [8]. Long-term Outlook - The long-term prospects for Zoetis are considered promising, as the company is a leader in the animal healthcare industry with a strong track record of earnings and dividend growth over the past decade [9]. - However, challenges such as headwinds related to its osteoarthritis treatments for pets have led to valuation compression [9].