Zoetis Inc. (NYSE:ZTS) Yearly Results: Here's What Analysts Are Forecasting For This Year

Zoetis Inc. (NYSE:ZTS) shareholders are probably feeling a little disappointed, since its shares fell 8.1% to US$158 in the week after its latest full-year results. Results were roughly in line with estimates, with revenues of US$9.3b and statutory earnings per share of US$5.47. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Zoetis

Taking into account the latest results, Zoetis' 17 analysts currently expect revenues in 2025 to be US$9.38b, approximately in line with the last 12 months. Statutory earnings per share are predicted to increase 4.0% to US$5.73. Before this earnings report, the analysts had been forecasting revenues of US$9.65b and earnings per share (EPS) of US$6.10 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the US$207 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Zoetis at US$244 per share, while the most bearish prices it at US$171. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Zoetis' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.3% growth on an annualised basis. This is compared to a historical growth rate of 7.7% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.6% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Zoetis.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$207, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Zoetis analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Zoetis .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.