Analysts surveyed by Thomson Reuters expect Zoetis to report earnings of 37 cents a share and revenue of $1.16 billion for the third quarter. For the third quarter of 2013 the company reported earnings of 34 cents a share, in-line with analysts' estimates. Zoetis reported revenue of $1.1 billion for the year-ago quarter, compared to analysts' estimates of $1.06 billion.
For the second quarter Zoetis reported earnings of 38 cents a share and revenue of $1.16 billion, in-line with analysts' estimates for the quarter.
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TheStreet Ratings team rates ZOETIS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZOETIS INC (ZTS) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to other companies in the Pharmaceuticals industry and the overall market, ZOETIS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The revenue growth came in higher than the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 4.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for ZOETIS INC is rather high; currently it is at 68.30%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.68% trails the industry average.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Pharmaceuticals industry average. The net income increased by 6.3% when compared to the same quarter one year prior, going from $128.00 million to $136.00 million.
- The debt-to-equity ratio is very high at 2.90 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, ZTS has managed to keep a strong quick ratio of 1.58, which demonstrates the ability to cover short-term cash needs.
- You can view the full analysis from the report here: ZTS Ratings Report