Livestock drug company Zoetis (NYSE:ZTS) is on the end of a positive market reaction as investors troop in following its Q3 result. Shares of the pet medicine and vaccine maker gained nearly 5% in Thursday’s afternoon trading session.
Notably, the company, earlier on Thursday, reported Q3 FY2023 EPS of $1.36, in line with Wall Street estimates. Sales increased by 7% year-over-year, with revenue hitting $2.2 billion. This beat analysts’ expectations by $30 million. For reference, analysts were expecting $2.17 billion in revenue.
According to the company, an 11% increase in demand for companion animal products, especially for dogs and cats, contributed significantly to its Q3 revenue.
In addition to the Q3 results, the company adjusted its full-year forecast to reflect the impact of foreign exchange rates. Importantly, management now expects revenue for the full year 2023 to be in the range of $8.475B to $8.55B.
Is Zoetis a Buy or Sell?
With three Buy recommendations, ZTS commands a Strong Buy consensus rating on TipRanks. The average ZTS price target of $201.67 implies a 26.44% upside potential from current levels. Meanwhile, ZTS stock has gained 9.48% this year, with numerous declines in recent months.
