) is set to report fourth quarter and full year 2013 results on
Feb 11 before the opening bell. Last quarter it posted a -2.86%
surprise. Let's see how things are shaping up for this
Growth Factors this Quarter
Although a robust and diversified product portfolio should help
Zoetis to boost its top line, a number of negative factors are
likely to mar the overall results for the fourth quarter. Zoetis
has already taken a number of initiatives to expand its business.
These expansion initiatives are likely to impact the company's
selling, general & administrative expenses, which will in
turn weigh upon its bottom line. Also, Zoetis' revenues were hurt
by 1% in the third quarter of 2013 by adverse foreign currency
movements. Negative foreign currency fluctuations remain a threat
in this quarter as well.
Zoetis' earnings in the last reported quarter fell short of the
Zacks Consensus Estimate by a penny. Moreover, Zoetis managed to
post positive earnings surprise in just one of the last three
quarters, with an average beat of 1.51%. We note that Zoetis is
the former Animal Health business of
). Zoetis started trading on the New York Stock Exchange from Feb
Our proven model does not conclusively show that Zoetis is likely
to beat earnings this quarter. That is because a stock needs to
have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
: The Earnings ESP for Zoetis is 0.00% since the Most Accurate
Estimate stands at 35 cents, in line with the Zacks Consensus
: Zoetis' Zacks Rank #3 when combined with a 0.00% ESP makes
surprise prediction difficult. We caution against stocks with
Zacks Rank #4 and #5 (Sell-rated stocks) going into the earnings
announcement, especially when the company is witnessing negative
Other Stocks to Consider
Here are some companies you may want to consider as our model
shows they have the right combination of elements to post an
earnings beat this quarter:
Acorda Therapeutics, Inc.
) has an Earnings ESP of +61.11% and holds a Zacks Rank #3.
Acorda will be reporting fourth quarter earnings on Feb 13.
Charles River Laboratories International, Inc.
) has an earnings ESP of +1.47% and holds a Zacks Rank #2 (Buy).
Actavis will be reporting fourth quarter earnings on Feb 11.
ACORDA THERAPT (ACOR): Free Stock Analysis
CHARLES RVR LAB (CRL): Free Stock Analysis
PFIZER INC (PFE): Free Stock Analysis Report
ZOETIS INC (ZTS): Free Stock Analysis Report
To read this article on Zacks.com click here.