Zoetis (NYSE:ZTS) Shares Gap Down After Earnings Miss

Key Points

• Shares gapped down — Zoetis opened at $90.67 after closing at $111.22 and was last around $88.49 on heavy volume following the report.
• Quarterly miss and guidance: Zoetis reported EPS of $1.53 vs. $1.61 expected and revenue of $2.26B vs. $2.30B (revenue +2.9% YoY), and set FY2026 EPS guidance of 6.85–7.00.
• Mixed analyst views and high institutional ownership: The stock carries an average "Hold" rating with a $151.75 price target, and institutions own about 92.8% of shares.

Zoetis Inc. (NYSE:ZTS - Get Free Report)'s stock price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $111.22, but opened at $90.67. Zoetis shares last traded at $88.4890, with a volume of 6,089,470 shares.

The company reported $1.53 earnings per share for the quarter, missing the consensus estimate of $1.61 by ($0.08). The firm had revenue of $2.26 billion for the quarter, compared to analysts' expectations of $2.30 billion. Zoetis had a net margin of 28.24% and a return on equity of 62.02%. The firm's revenue for the quarter was up 2.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.48 EPS. Zoetis has set its FY 2026 guidance at 6.850-7.000 EPS.

Analyst Upgrades and Downgrades

Several analysts have weighed in on ZTS shares. Weiss Ratings downgraded Zoetis from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, March 27th. BTIG Research reiterated a "buy" rating and set a $160.00 price target on shares of Zoetis in a research note on Thursday, February 26th. Bank of America boosted their price target on Zoetis from $135.00 to $140.00 and gave the company a "neutral" rating in a research note on Friday, February 13th. William Blair reiterated an "outperform" rating on shares of Zoetis in a research note on Monday, March 2nd. Finally, Leerink Partners restated a "market perform" rating on shares of Zoetis in a research note on Tuesday, March 10th. Seven equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $151.75.

Hedge Funds Weigh In On Zoetis

Large investors have recently bought and sold shares of the business. Global Wealth Strategies & Associates acquired a new position in Zoetis in the 4th quarter worth about $25,000. Prosperity Bancshares Inc purchased a new stake in Zoetis in the 4th quarter worth $25,000. KERR FINANCIAL PLANNING Corp purchased a new stake in Zoetis in the 3rd quarter worth $31,000. Lodestone Wealth Management LLC purchased a new stake in Zoetis in the 4th quarter worth $30,000. Finally, Elyxium Wealth LLC purchased a new stake in Zoetis in the 4th quarter worth $32,000. Institutional investors and hedge funds own 92.80% of the company's stock.

Zoetis Stock Performance

The company has a market cap of $37.70 billion, a PE ratio of 15.15, a price-to-earnings-growth ratio of 1.73 and a beta of 0.87. The firm's fifty day moving average is $119.33 and its 200 day moving average is $124.10. The company has a current ratio of 3.03, a quick ratio of 1.94 and a debt-to-equity ratio of 2.71.

About Zoetis

Zoetis Inc NYSE: ZTS is a global animal health company that develops, manufactures and markets a broad portfolio of products and services for companion animals and livestock. The company's offerings include pharmaceuticals, vaccines and biologics, parasiticides and anti-infectives, as well as diagnostic instruments, consumables and laboratory testing services. Zoetis serves the veterinary community, livestock producers and other animal-health customers with products designed to prevent, detect and treat disease and to support animal productivity and welfare.

Zoetis traces its roots to the animal health business of Pfizer and became an independent, publicly traded company following a 2013 separation and initial public offering.

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