) is set to report first quarter 2014 results on May 6 before the
opening bell. Last quarter it posted a positive surprise of
2.86%. Let's see how things are shaping up for this announcement.
Growth Factors this Quarter
Zoetis' earnings in the last reported quarter were ahead of the
Zacks Consensus Estimate by a penny. Moreover, Zoetis managed to
post positive earnings surprises in two of the last four
quarters, with an average beat of 1.96%.
Although a robust and diversified product portfolio should help
Zoetis to boost its top line this quarter as well, a number of
negative factors are likely to mar the overall results for the
first quarter of 2014. 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 2% in the fourth
quarter of 2013 by adverse foreign currency movements. Negative
foreign currency fluctuations can prove to be a threat in this
quarter as well.
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
(Expected Surprise Prediction) and a Zacks Rank of #1, 2 or 3 for
this to happen. That is not the case here as you will see below.
Zacks ESP: The Earnings ESP for Zoetis is -2.70% since the Most
Accurate Estimate stands at 36 cents, below the Zacks Consensus
Estimate of 37 cents.
Zacks Rank: Zoetis' Zacks Rank #3 when combined with a -2.70% ESP
makes surprise prediction difficult. We caution against stocks
with Zacks Ranks #4 and #5 (Sell-rated stocks) going into the
earnings announcement, especially when the company is witnessing
negative estimate revisions.
Other Stocks to Consider
Here are some companies you may want to consider as our model
shows that they have the right combination of elements − a
positive Zacks Earnings ESP and a Zacks Rank #1, #2 or #3
) has an Earnings ESP of +0.89% and holds a Zacks Rank #2 (Buy).
Allergan will be reporting first quarter earnings on May 7 before
the opening bell.
Perrigo Company Public Limited Company
) has an earnings ESP of +0.65% and holds a Zacks Rank #3.
Perrigo will be reporting first quarter earnings on May 7 before
the opening bell.
ALLERGAN INC (AGN): Free Stock Analysis
PFIZER INC (PFE): Free Stock Analysis Report
PERRIGO CO PLC (PRGO): Free Stock Analysis
ZOETIS INC (ZTS): Free Stock Analysis Report
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