Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

Zoetis approves $6 billion share buyback program

Published 2024-08-01, 05:04 p/m
ZTS
-

PARSIPPANY, N.J. - Zoetis Inc . (NYSE:ZTS), a global leader in animal health, announced a new share repurchase program valued at $6 billion, which the company's Board of Directors has approved as a component of its capital allocation strategy. This program represents the largest in the company's history and is slated to take place over the next four years.

The initiative underscores Zoetis' confidence in its financial stability and cash flow generation capabilities. Wetteny Joseph, the Executive Vice President and Chief Financial Officer, highlighted the company's robust performance and promising long-term business outlook as key factors enabling this substantial capital return to shareholders.

According to the announcement, the repurchase program is flexible and may be discontinued at any time. It follows the near completion of the previous $3.5 billion repurchase program initiated in December 2021, which is expected to conclude in 2024.

Zoetis has been a prominent figure in the animal health industry for over seven decades, offering a range of products including medicines, vaccines, diagnostics, and technologies that support the care of animals across more than 100 countries. With a workforce of approximately 14,100 employees, the company reported revenues of $8.5 billion in 2023

In other recent news, Zoetis Inc., has been making headlines with its robust first-quarter results and impressive operational revenue growth. The company's U.S. revenue grew by 16%, reaching $1.2 billion, while the international segment experienced an 8% operational growth, totaling $1 billion. These results were primarily driven by their companion animal products, particularly the osteoarthritis pain franchise, including Librela and Solensia.

Additionally, Zoetis has raised its full-year operational guidance, expecting revenue between $9.05 billion and $9.20 billion. This development led JPMorgan (NYSE:JPM) to reaffirm its Overweight rating on Zoetis, maintaining a steady price target of $225.00 for the shares.

Analysts from both JPMorgan and BTIG have expressed positive sentiments about the company's potential. BTIG initiated coverage on Zoetis with a Buy rating, citing the company's ability to capitalize on the growing global animal health market. Meanwhile, JPMorgan analysts predict Zoetis to report revenues of $2.3 billion, aligning with consensus estimates, and an earnings per share (EPS) of $1.53 for the quarter, exceeding the consensus by $0.03.

InvestingPro Insights

Zoetis Inc. (NYSE:ZTS) has not only announced a substantial new share repurchase program but also exhibits a strong financial and operational profile according to InvestingPro data. The company's market capitalization stands at a robust $83.03 billion, indicating its significant presence in the animal health industry. Moreover, Zoetis has demonstrated consistent revenue growth, with a 7.91% increase over the last twelve months as of Q1 2024, and an even higher quarterly revenue growth rate of 9.5% in Q1 2024.

InvestingPro Tips highlight that Zoetis boasts a perfect Piotroski Score of 9, reflecting high-quality business operations. Additionally, the company has raised its dividend for 11 consecutive years, signaling a strong commitment to providing shareholder returns. This aligns with the company's announcement of the new share repurchase program, further underlining management's confidence in Zoetis' financial strength and future prospects. On the other hand, Zoetis is trading at a high earnings multiple, with a P/E ratio of 34.79 and a slightly higher adjusted P/E ratio of 35.07 for the last twelve months as of Q1 2024, suggesting that the market has high expectations for the company's earnings growth.

For investors looking for more insights, there are additional InvestingPro Tips available, which provide an in-depth analysis of Zoetis' financial health, including its debt levels, cash flow, and stock volatility. These tips can be accessed by visiting the InvestingPro platform for Zoetis at https://www.investing.com/pro/ZTS.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.