InvestorsHub Logo
Boards
News
Market Data
Markets
Discover
Discover
AI Subscribe Login/Register account icon
S&P 500
5,566.46
(
1.12%
)
US TECH 100
19,251.33
(
1.27%
)
Dow Jones
40,415.44
(
0.32%
)
Brent Oil
81.65
(
0.16%
)
Bitcoin
67,327.47
(
-0.41%
)
Post# of 252650
Next 10
Reply Private New
Public Reply Private Reply New Post
Keep Last Read
Keep Next 10 Report Keyboard Shortcuts
Next 10 Prev Next

DewDiligence

Send PM Follow Ignore
Followers 831
Posts 120092
Boards Moderated 16
Alias Born 09/05/2002

DewDiligence

Member Level

Re: Rocky3 post# 158429

Sunday, 03/17/2013 5:35:07 PM

Sunday, March 17, 2013 5:35:07 PM

Post# of 252650
ZTS—The Barron’s piece is a reasonable overview but it overlooks what is perhaps the main impetus for upside earnings surprises: the income-tax rate.

In the pre-IPO roadshow materials, ZTS modeled a 32% tax rate because that’s the average rate ZTS has been paying as a wholly-owned subsidiary of PFE. Why such a high rate? Because a large portion of ZTS’ foreign earnings have been repatriated to help PFE pay its dividend and fund its large share buybacks.

Once ZTS becomes a standalone company, it will not need to repatriate such a large portion of its foreign earnings, and hence the tax rate should go down considerably.

“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”

Public Reply Private Reply New Post
Keep Last Read
Keep Last Read Next 10 Report Keyboard Shortcuts
Next 10 Prev Next
Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.

Sign Up