Animal Health-Focused Zoetis Stock Faces Near-Term Pressure, Analyst Cites Uncertainty In Q4 Results, Weak Margins
Portfolio Pulse from Vandana Singh
Zoetis Inc (NYSE:ZTS) reported Q4 2023 revenue of $2.21 billion, up 8% Y/Y, with net income of $525 million, a 14% increase. Adjusted net income was $569 million, missing consensus by $1.32 per share. U.S. sales rose 9%, driven by products like Librela and Simparica Trio. 2024 revenue guidance is set at $9.075-$9.225 billion, with adjusted EPS of $5.74-$5.84, below consensus of $5.99. Despite near-term pressures and weak margins, William Blair maintains an Outperform rating, citing growth prospects and an innovative pipeline.
February 13, 2024 | 6:22 pm
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NEGATIVE IMPACT
Zoetis reported a solid Q4 2023 performance with an 8% Y/Y revenue increase but missed adjusted net income consensus. 2024 guidance is below market expectations, causing near-term stock pressure, as reflected by a 5.83% drop in share price.
Zoetis's Q4 performance and 2024 guidance below consensus indicate potential near-term financial pressure, directly impacting investor sentiment and stock price. The 5.83% drop in share price post-earnings reflects immediate market reaction. However, long-term growth prospects, particularly from new product launches like Librela, may mitigate these concerns over time.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100