Zoetis (ZTS) delivered better-than-expected fourth-quarter and full-year results bolstered by an innovative and diverse portfolio. Revenue and earnings came in above consensus estimates, and the company issued its full-year outlook. ZTS shares rose 0.68% to close at $197.76 on February 15.
Zoetis is a leading manufacturer of medicine and vaccines for pets and livestock. It also offers diagnostic products, genetic tests, and biodevices. Zoetis’ upcoming earnings report for Q1 2022 is scheduled for May 05, 2022.
Zoetis Earnings
Revenue in the fourth quarter was up 9% year-over-year to $2 billion, beating consensus estimates of $1.94 billion. Revenue in the U.S. was up 9% year-over-year, with sales of companion animal products increasing 20%. Full-year revenue increased 16% year-over-year to $7.8 billion.
Adjusted net income in the fourth quarter increased 8% year-over-year to $474 million or $1 per diluted share, exceeding consensus estimates of $0.97 a share. Full-year net income grew 21% year-over-year to $2.2 billion or $4.70 a share.
Zoetis has secured market approval for its innovative mAb therapies. It has already secured approval in the U.S. for the first injectable mAb to control pain in cats, Solensia. It has also secured approval in the European Union, the U.K, and Canada.
The company issued guidance and expects full-year revenue to range between $8.33 billion and $8.48 billion. Adjusted diluted EPS is expected at between $5.09 and $5.19.
Stock Rating
Yesterday Cantor Fitzgerald analyst Louise Chen reiterated a Buy rating on Zoetis stock with a $250 price target, implying 26.42% upside potential to current levels. According to the analyst, the company is an exciting prospect thanks to its durable and diversified business model.
Consensus among analysts is a Strong Buy based on 7 Buys and 2 Holds. The average Zoetis price target of $247.25 implies 25.03% upside potential to current levels.
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