Zoetis (NYSE:ZTS) Announces Earnings Results

Key Points

• Zoetis reported quarterly earnings of $1.76 per share, beating the consensus estimate of $1.62 by $0.14, and recorded a revenue increase of 4.2% year-over-year to $2.46 billion.
• The company declared a quarterly dividend of $0.50 per share with a yield of 1.4%, and analysts currently rate the stock as a "Moderate Buy" with a consensus target price of $204.63.
• Zoetis has faced mixed ratings from analysts, with Stifel Nicolaus downgrading to "hold" and Piper Sandler raising their price target, highlighting a range of opinions in the market.

Zoetis (NYSE:ZTS - Get Free Report) announced its quarterly earnings results on Tuesday. The company reported $1.76 earnings per share for the quarter, beating the consensus estimate of $1.62 by $0.14, Zacks reports. The business had revenue of $2.46 billion during the quarter, compared to analysts' expectations of $2.41 billion. Zoetis had a net margin of 27.83% and a return on equity of 56.90%. The firm's revenue for the quarter was up 4.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.56 EPS. Zoetis updated its FY 2025 guidance to 6.300-6.400 EPS.

Zoetis Stock Down 0.6%

NYSE ZTS traded down $0.90 during trading hours on Friday, reaching $147.34. 2,062,093 shares of the company's stock traded hands, compared to its average volume of 3,804,772. Zoetis has a 52-week low of $139.70 and a 52-week high of $200.33. The firm has a market cap of $65.30 billion, a PE ratio of 25.36, a PEG ratio of 2.41 and a beta of 0.88. The firm has a 50-day simple moving average of $156.71 and a 200 day simple moving average of $159.76. The company has a debt-to-equity ratio of 1.05, a current ratio of 1.76 and a quick ratio of 1.04.

Zoetis Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Investors of record on Friday, July 18th will be given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend is Friday, July 18th. Zoetis's dividend payout ratio (DPR) is 34.42%.

Insider Transactions at Zoetis

In related news, EVP Roxanne Lagano sold 652 shares of Zoetis 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 completion of the transaction, the executive vice president directly owned 15,129 shares of the company's stock, valued at $2,571,930. This trade represents a 4.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.18% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Brighton Jones LLC lifted its position in 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 period. Intech Investment Management LLC lifted its position in Zoetis by 17.2% during the 1st quarter. Intech Investment Management LLC now owns 8,347 shares of the company's stock valued at $1,374,000 after acquiring an additional 1,224 shares during the period. Finally, Empowered Funds LLC increased its stake in Zoetis by 6.2% during the 1st quarter. Empowered Funds LLC now owns 11,293 shares of the company's stock valued at $1,859,000 after purchasing an additional 657 shares in the last quarter. 92.80% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the stock. Leerink Partnrs cut shares of Zoetis from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 17th. UBS Group dropped their price target on shares of Zoetis from $189.00 to $170.00 and set a "neutral" rating for the company in a research report on Wednesday, May 7th. Leerink Partners cut shares of Zoetis from an "outperform" rating to a "market perform" rating and dropped their target price for the stock from $180.00 to $155.00 in a research report on Thursday, July 17th. Stifel Nicolaus cut shares of Zoetis from a "buy" rating to a "hold" rating and dropped their target price for the stock from $165.00 to $160.00 in a research report on Wednesday, June 18th. Finally, Piper Sandler raised their target price on shares of Zoetis from $205.00 to $210.00 and gave the stock an "overweight" rating in a research report on Monday, May 12th. Four research analysts have rated the stock with a hold rating, six have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $204.63.

About Zoetis

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.