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

Zoetis Inc. (NYSE:ZTS) shares gapped down prior to trading 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 changing hands.

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

Analysts Set New Price Targets

A number of equities analysts have commented on the company. Citigroup assumed coverage on Zoetis in a report on Wednesday, April 15th. They set a “buy” rating and a $145.00 target price for the company. BTIG Research reissued a “buy” rating and set a $160.00 target price on shares of Zoetis in a report on Thursday, February 26th. Leerink Partners reissued a “market perform” rating on shares of Zoetis in a report on Tuesday, March 10th. Weiss Ratings cut Zoetis from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, March 27th. Finally, Wall Street Zen cut Zoetis from a “buy” rating to a “hold” rating in a report on Saturday, May 2nd. Seven research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $151.75.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. Summit Place Financial Advisors LLC boosted its position in shares of Zoetis by 0.4% during the third quarter. Summit Place Financial Advisors LLC now owns 19,369 shares of the company’s stock worth $2,834,000 after buying an additional 76 shares during the period. CWA Asset Management Group LLC boosted its position in shares of Zoetis by 1.1% during the third quarter. CWA Asset Management Group LLC now owns 7,236 shares of the company’s stock worth $1,059,000 after buying an additional 80 shares during the period. RFG Advisory LLC boosted its position in shares of Zoetis by 4.9% during the fourth quarter. RFG Advisory LLC now owns 1,708 shares of the company’s stock worth $215,000 after buying an additional 80 shares during the period. YANKCOM Partnership boosted its position in shares of Zoetis by 3.5% during the fourth quarter. YANKCOM Partnership now owns 2,402 shares of the company’s stock worth $302,000 after buying an additional 81 shares during the period. Finally, Evergreen Capital Management LLC boosted its position in shares of Zoetis by 3.3% during the third quarter. Evergreen Capital Management LLC now owns 2,696 shares of the company’s stock worth $394,000 after buying an additional 85 shares during the period. 92.80% of the stock is currently owned by hedge funds and other institutional investors.

Zoetis Stock Performance

The firm has a 50-day moving average price of $119.33 and a 200 day moving average price of $124.10. The firm has a market capitalization 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 company has a quick ratio of 1.94, a current ratio of 3.03 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.