Stock prices of Zomedica showing an increase today, leading investors to consider potential investment opportunities.
**Zomedica's Q4 Earnings and PulseVet Acquisition: A Mixed Bag for Investors**
Zomedica, a growing veterinary supply company, has announced its fourth-quarter revenue of $4.1 million, a significant increase from its prior-year period with no sales. However, the company's earnings per share (EPS) for the quarter was a slight loss of -$0.01, indicating ongoing challenges in achieving profitability.
The company's revenue growth can be attributed to its recent acquisition of PulseVet for $70.9 million in October 2021, which contributed $4 million to Zomedica's fourth-quarter revenue. PulseVet specialises in the development and distribution of veterinary diagnostics and shock wave therapy, a treatment used to treat a wide variety of conditions in animals.
The sales for Zomedica's Truforma diagnostics platform in the fourth quarter of 2021 showed a considerable improvement from $22,500 in the third quarter of 2021. However, the current quarter's revenue generated by Truforma is significantly less compared to the revenue generated by PulseVet.
Zomedica's strategy to build its veterinary diagnostics and supply business is evident in the PulseVet acquisition, which aligns with the company's aim to disrupt the veterinary diagnostics field and build significant growth through new product launches.
Analysts view Zomedica as a potential investment opportunity, particularly for those interested in the veterinary diagnostics space. However, the company's ongoing losses and slim margins warrant caution. Insider buying at a low average price of $0.12 per share indicates some insider optimism, but the stock price itself remains low, currently around $0.04 as of July 2025.
Zomedica is scheduled to report its full results on Tuesday, and its CEO, Larry Heaton, is set to lay out a compelling vision for the company at the Q1 Virtual Investor Summit on March 8. However, without the financial details of the fourth quarter, it's hard to make a strong argument in favor of buying the healthcare stock.
Given the company's ongoing losses and uncertain near-term profitability, the best course of action with this stock, as of now, is to remain on the sidelines. Investors who believe in Zomedica's product pipeline and veterinary market potential may find it a speculative buy, but they should exercise caution and carefully consider the risks involved.
- Initiatives like the acquisition of PulseVet, a company specializing in veterinary diagnostics and shock wave therapy, indicate Zomedica's focus on investing in the veterinary diagnostics field to drive significant growth.
- Despite the revenue growth from PulseVet, Zomedica's fourth-quarter earnings reflected a slight loss, suggesting ongoing challenges in achieving profitability, which raises questions about the company's finance management.
- Analysts view Zomedica as a potential investment opportunity in the veterinary diagnostics space, but the company's ongoing losses, slim margins, and low stock price necessitate caution for prospective investors.
