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Zoetis, Inc. ZTS is slated to report its first-quarter 2025 earnings on May 6, 2025, before the opening bell.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $2.19 billion. The consensus mark for earnings is pinned at $1.40 per share. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Let's see how things might have shaped up for Zoetis in the soon-to-be-reported quarter.
Factors to Consider Regarding ZTS’ Q1 Earnings
The veterinary drugmaker derives most of its revenues from a diversified product portfolio of medicines and vaccines used to treat and protect livestock and companion animals. Zoetis’ remaining revenues are derived from its non-pharmaceutical product categories, such as nutritional and agribusiness, and products and services in biodevices, genetic tests and precision animal health.
Zoetis reports business results under two geographical operating segments — the United States and International.
First-quarter revenues in the United States segment are likely to have increased from the year-ago quarter, primarily driven by the rising sales of Zoetis’ companion animal products. The Zacks Consensus Estimate for revenues generated from this segment is pegged at $1.19 billion, while our model estimate for the same is pinned at $1.17 billion.
Revenues from the International segment are expected to have also increased in the to-be-reported quarter due to higher companion animal product sales. The Zacks Consensus Estimate for revenues generated from this segment is pegged at $0.99 billion, while our model estimate for the same is pinned at $1.01 billion.
Year to date, shares of Zoetis have lost 5.8% compared with the industry’s 4% decline.
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Companion animal products sales, particularly its monoclonal antibody products for osteoarthritis pain (Librela for dogs and Solensia for cats), along with its flea, tick and heartworm combination product for dogs, Simparica Trio, are expected to have driven revenues in both the United States and International segments in the to-be-reported quarter. Zoestis’ Key dermatology products, including Apoquel and Cytopoint, are expected to have contributed to growth in these segments as well.
Apoquel is also approved as the first and only chewable treatment in the United States for controlling pruritus related to allergic dermatitis and control of atopic dermatitis in dogs at least 12 months of age. The drug’s expanded label has been contributing to the sales.
Around mid-April, the FDA approved a new indication for Zoetis’ Simparica Trio to prevent flea tapeworm infections by targeting and killing vector fleas in treated dogs. With this approval, the triple combo drug is now the only canine combination parasiticide indicated to prevent flea tapeworm infections at the source by eliminating carrier fleas before they can transmit the parasite. The label expansion is expected to further boost sales in the quarters ahead.