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Zoetis (ZTS) Beats Q1 Earnings and Revenue Estimates

Zoetis Inc. ZTS is a global leader in the discovery, development, manufacture and commercialization of animal health medicines and vaccines, with a focus on both livestock and companion animals. This Florham Park, NJ-based company came into existence following Pfizer’s decision to spin off its animal health business in 2013.

Zoetis’ robust and diversified product portfolio includes products for livestock and companion animals. Meanwhile, the company’s top line should benefit from the addition of products acquired (Feb 2015) from Abbott Laboratories, the Nov 2015 Pharmaq acquisition as well as from the performance of Apoquel and other key brands. In this scenario, investor focus remains on top-and bottom-line numbers.

Zoetis’ track record has been impressive with the company beating earnings estimates consistently. In fact, Zoetis has posted a positive earnings surprise in each of the trailing four quarters, with an average beat of 14.81%.

Currently, Zoetis has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Zoetis beat on first-quarter 2016 earnings. The company reported EPS of 48 cents while our consensus called for EPS of 41 cents.

Revenues: Revenues in the reported quarter also came in above expectations. Zoetis posted revenues of $1.16 billion above our consensus estimate of $1.09 billion.

Key Stats: Once again, Zoetis has surpassed earnings estimates. The company updated its guidance for 2016, to reflect foreign exchange rates as of April and current views of its operations. For 2016, the company expects earnings in the range of $1.83 to $1.90 per share (old guidance: $1.71 to $1.81 per share) on revenues of $4.775 billion and $4.875 billion (old guidance: $4.65 billion and $4.775 billion). The Zacks Consensus Estimate for earnings is $1.79 per share on revenues of $4.748 billion.

Check back later for our full write up on this Zoetis earnings report later!

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