William Blair Analysts Cut Earnings Estimates for Zoetis

Key Points

• William Blair has revised its Q3 2025 earnings per share estimate for Zoetis down to $1.64, slightly below the previous estimate of $1.65, amidst ongoing evaluations of the company's financial performance.
• In its most recent earnings report, Zoetis posted earnings of $1.76 per share, exceeding the consensus estimate of $1.62, supported by a revenue growth of 4.2% year-over-year to $2.46 billion.
• Despite the mixed outlook from analysts, Zoetis holds a consensus rating of "Moderate Buy" with a target price averaging $204.63, while several institutions have recently increased their stake in the company.

Zoetis Inc. (NYSE:ZTS - Free Report) - Research analysts at William Blair dropped their Q3 2025 EPS estimates for Zoetis in a research report issued on Tuesday, August 5th. William Blair analyst B. Vazquez now forecasts that the company will post earnings per share of $1.64 for the quarter, down from their prior forecast of $1.65. The consensus estimate for Zoetis' current full-year earnings is $6.07 per share. William Blair also issued estimates for Zoetis' Q4 2025 earnings at $1.47 EPS, Q1 2026 earnings at $1.58 EPS, Q3 2026 earnings at $1.77 EPS and Q4 2026 earnings at $1.62 EPS.

Zoetis (NYSE:ZTS - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The company reported $1.76 EPS for the quarter, beating analysts' consensus estimates of $1.62 by $0.14. The business had revenue of $2.46 billion during the quarter, compared to the consensus estimate of $2.41 billion. Zoetis had a return on equity of 56.90% and a net margin of 27.83%. Zoetis's revenue for the quarter was up 4.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.56 earnings per share.

Several other research analysts also recently commented on the company. Leerink Partners downgraded Zoetis from an "outperform" rating to a "market perform" rating and lowered their target price for the stock from $180.00 to $155.00 in a research note on Thursday, July 17th. Piper Sandler upped their target price on Zoetis from $210.00 to $215.00 and gave the company an "overweight" rating in a report on Monday. Stifel Nicolaus cut Zoetis from a "buy" rating to a "hold" rating and cut their price target for the stock from $165.00 to $160.00 in a report on Wednesday, June 18th. UBS Group lowered their target price on Zoetis from $189.00 to $170.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 7th. Finally, Leerink Partnrs lowered Zoetis from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 17th. Four equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $205.25.

Zoetis Price Performance

ZTS stock traded up $0.53 during midday trading on Friday, reaching $149.55. The company had a trading volume of 1,206,239 shares, compared to its average volume of 3,109,386. The company has a market capitalization of $66.28 billion, a price-to-earnings ratio of 25.75, a price-to-earnings-growth ratio of 2.41 and a beta of 0.88. The stock has a 50 day moving average price of $156.30 and a 200-day moving average price of $159.57. Zoetis has a 1-year low of $139.70 and a 1-year high of $200.33. The company has a debt-to-equity ratio of 1.05, a current ratio of 1.76 and a quick ratio of 1.04.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in ZTS. Brighton Jones LLC boosted its position in shares of Zoetis by 180.4% during the 4th quarter. Brighton Jones LLC now owns 4,629 shares of the company's stock valued at $754,000 after acquiring an additional 2,978 shares during the last quarter. Bank Pictet & Cie Europe AG increased its stake in Zoetis by 5.4% in the 4th quarter. Bank Pictet & Cie Europe AG now owns 419,530 shares of the company's stock worth $68,354,000 after purchasing an additional 21,470 shares during the period. Bessemer Group Inc. increased its stake in shares of Zoetis by 10.5% during the fourth quarter. Bessemer Group Inc. now owns 34,399 shares of the company's stock valued at $5,606,000 after buying an additional 3,282 shares during the period. F M Investments LLC increased its stake in shares of Zoetis by 19.3% during the fourth quarter. F M Investments LLC now owns 1,763 shares of the company's stock valued at $287,000 after buying an additional 285 shares during the period. Finally, Capital Fund Management S.A. increased its stake in shares of Zoetis by 8.9% during the fourth quarter. Capital Fund Management S.A. now owns 252,536 shares of the company's stock valued at $41,146,000 after buying an additional 20,677 shares during the period. Institutional investors own 92.80% of the company's stock.

Insiders Place Their Bets

In other Zoetis news, EVP Roxanne Lagano sold 652 shares of the company's stock in a transaction dated Tuesday, June 3rd. The shares were sold at an average price of $170.00, for a total transaction of $110,840.00. Following the sale, the executive vice president directly owned 15,129 shares of the company's stock, valued at $2,571,930. This represents a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 0.16% of the company's stock.

Zoetis Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 3rd. Investors of record on Friday, July 18th will be issued a $0.50 dividend. The ex-dividend date of this dividend is Friday, July 18th. This represents a $2.00 annualized dividend and a yield of 1.3%. Zoetis's dividend payout ratio (DPR) is 34.42%.

Zoetis Company Profile

Zoetis Inc engages in the discovery, development, manufacture, and commercialization of animal health medicines, vaccines, and diagnostic products and services in the United States and internationally. The company commercializes products primarily across species, including livestock, such as cattle, swine, poultry, fish, and sheep and others; and companion animals comprising dogs, cats, and horses.