Zoetis Inc. (ZTS) Historical Price-Reaction Patterns

109 days have passed by since the last earnings report for Zoetis Inc. (NYSE:ZTS) and the new quarterly results look set to arrive in 82 days. The shares of ZTS at the moment are trading at a volume of 1.59 million, which compares with its normal daily standard volume of 2.13 million shares. This has led to the shares of the company declining by -0.34%, currently exchanging hands at $119.81 a share. ZTS stock has been up by $10.39 (-7.98%) ever since it reached its 52-week high of $130.2 back in October 15, 2019. It has progressed below its 50-day moving average of $123.34 and is up 1.6% over the past week. The stock has added 7.9% since the last one arrived so the question here is that will the upbeat trend in that time frame continue leading up to its next earnings release, or is the ZTS share price due for a correction?

Zoetis Inc. (ZTS) Forecasts And Latest Quarter Earnings

Ahead of their fiscal fourth-quarter to be released on Thursday, Feb 13, 2020, 12 analysts who are covering the company are estimating that it will record a profit of $0.89 per share, with analysts having different outlooks from $0.84 to $0.99. The current agreed outlook, when compared to the profit recorded last year, is at $0.79 a share, thus an increase of 12.66% is expected. The profit view for a complete financial year for Zoetis Inc. is expected to be around $3.6 in current year, a decline of nearly 15.02% from last year which was $3.13.

Let’s now look at their sales section, ZTS’s revenue is estimated to be $1.56B, a figure which is more than the $1.56B recorded for Q4 last year. Their sequential sales though are expected to grow by 3.8% from their Q3’s sales which were $1.58B. Their full-year outlook is pegged at $6.22B, implying that there would be an increase of 6.69% over the $5.83B they recorded last year in revenue. Zoetis Inc. is projected to get sales lifted by 7.4% in the next quarter, with a revenue target of $6.68B.

Analyzing The Earnings History Of Zoetis Inc. (NYSE:ZTS)

In the past few years, the ZTS stock has been known to miss the Wall Street’s earnings projection. The company missed 0% of the time, according to the data pulled on their earnings, was able to meet predictions on 1 occasions and topped expectations 11 times. Looking at the past trend, the price of Zoetis Inc. shares had risen following the release of their earnings in 17 of the last 26 quarters.

Looking back, here is how Zoetis Inc. (ZTS) stock reacted to earnings misses and beats. It gave investors reason to be bullish with the price going down after 0 of the last four earnings reports. The shares of Zoetis Inc. recorded 7.64%, 1.34%, 5.68% and 4.55%, respectively, on the first day of past earnings releases. After a week of earnings reports, the changes were 10.1%, 0.07%, 6.96% and 5.59%. Their post-earnings price movements have resulted in an average increase of 4.8% and an average increase of 5.68% in Zoetis Inc. on next day and 7th day, sequentially. ZTS’s one month stock performance led to its shares declining by -2.55% with a return of 35.1% witnessed over the last 52 weeks.

The higher number of analysts has assigned a buy or better ratings (10) on the Zoetis Inc. stock, while 5 of them have a rating of a Hold with the 11-year target price suggested by the analysts standing at $137. This price target implies potential upside of 14.35 percent over the next 12 months based on the current share price.

Zoetis Inc. (ZTS) Post Earnings Announcement Drift (PEAD)

Back on August 06, 2019, Zoetis Inc. (NYSE:ZTS) released its Q3 results, in which it recorded EPS of $0.94 that exceeded consensus estimates of $0.88. After the earnings were reported, the price of stock kicked off the session at $117.48 and remained in a range of $117.59 to $121.81 on the first day. The shares were priced at $121.17 at the close with a total volume of shares being 4042312.

On May 02, 2019, the Q2 earnings report was disclosed with EPS of $0.9. This was above the estimation of $0.82 per share. The stock’s price was in the range of between $100.27 and $103.17 on the first-day post announcement, after opening the day at $100.27. The session came to close at $103.15 and there was a total volume of 2003579 shares.

February 14, 2019 was the day when its Q1 results were unveiled. The earnings came in at $0.88, beating the projected $0.79 per share. The very next day, price of stock opened at $88.65 while staying in a range of $89.01 to $93.57. At the end, it moved to $93.26 a total volume of shares been 5438161.

In the year-ago Q4 earnings on November 01, 2018, the company saw profit per share of $0.79. That was better than the $0.77 analysts had expected. Company’s share price started at $91.96 on the first full trading day post-earning and then exchanged hands between $93.77 and $96.57 throughout the session. The closing price of $94.25 came on the back of 4277036 shares in volume.