Zoetis (ZTS) Q3 Earnings & Revenues Surpass Estimates

Florham Park, NJ-based Zoetis Inc.ZTS is one of the leading global animal health companies focused on the discovery, development, manufacture and commercialization of animal health medicines and vaccines, with a focus on both livestock and companion animals. The company came into existence following Pfizer's decision to spin off its animal health business in 2013.

Zoetis' diversified portfolio of products for livestock and companion animals should continue to drive top-line growth at the company. The company's top line should continue to benefit from the addition of products acquired from Abbott Laboratories (February 2015), Pharmaq (November 2015), Nexvet (July 2017) as well as from the performance of Apoquel and other key brands. In this scenario, investor focus remains on top-and bottom-line numbers. In July 2018, Zoetis completed the acquisition of Abaxis, Inc., a leading global provider of veterinary point-of-care diagnostic instruments for approximately $2 billion or $83 per share in cash. The deal is aimed to strengthen Zoetis' presence in the animal health diagnostics market.

Zoetis' track record has been impressive with the company beating earnings estimates consistently. In fact, Zoetis' earnings surpassed expectations in all of the last four quarters, with an average positive surprise of 5.83%.

Currently, Zoetis has a Zacks Rank #3 (Hold), but that could definitely change following the company's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings Beat: Zoetis reported earnings per share of 83 cents in third-quarter of 2018 beating the Zacks Consensus Estimate of 77 cents.

Revenues Beat: Zoetis posted revenues of $1.48 billion surpassing the Zacks consensus estimate of $1.46 billion.

Key Stats: During the third quarter, revenue from the company's U.S. segment was $757 million, an increase of 11% and revenue from the International segment was $709 million, an increase of 8% on a reported basis.

2018 Outlook Updated: The company expects adjusted earnings in the range of$3.08 to $3.13 per share revised from its previous expectation of $3.00 to $3.10 per share. Revenues are now expected in the range of $5.75 billion to $5.80 billion updated from the previous guidance range of $5.70 billion to $5.80 billion. The Zacks Consensus Estimate for earnings and revenues is pegged at $3.06 per share and $5.78 billion, respectively.

Zoetis Inc. Price and EPS Surprise

Zoetis Inc. Price and EPS Surprise | Zoetis Inc. Quote

Share Price Impact: Shares of the company were inactive in- pre-market trading .

Check back later for our full write up on this ZTS earnings report later!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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