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Phibro (PAHC) Up 2.9% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Phibro Animal Health (PAHC - Free Report) . Shares have added about 2.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Phibro due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Phibro Q4 Earnings and Revenues Beat, Operating Margin Down
Phibro Animal Health delivered adjusted earnings per share (EPS) of 41 cents in the fourth quarter of fiscal 2024, up 7.9% from the year-ago quarter’s level. The bottom line beat the Zacks Consensus Estimate by 20.6%.
Without adjustments, the GAAP EPS in the quarter was 2 cents, down 92.9% from the year-ago quarter’s figure.
PAHC reported full-year adjusted EPS of $1.19, reflecting a 1.7% decline from fiscal 2023. The figure beat the Zacks Consensus Estimate by 6.25%.
Net Sales
In the quarter under review, net sales totaled $273.2 million, up 7.1% from the year-ago quarter’s level. The figure also topped the Zacks Consensus Estimate by 4.1%.
For fiscal 2024, the company reported net sales of $1.02 billion, up 4.1% from the prior-year level. The figure beat the Zacks Consensus Estimate by a marginal 1%.
Segmental Sales
The company conducts its operations via three segments — Animal Health, Mineral Nutrition and Performance Products.
In the fourth quarter of fiscal 2024, Animal Health’s net sales increased 8% to $191.5 million.
Within the segment, net sales of medicated feed additives (MFAs) and others reflected 12% year-over-year growth. The top line surpassed our model’s projection of $181.8 million by 5.3%.
Nutritional specialty product sales decreased 4%, primarily due to lower demand for dairy products. However, net vaccine sales showed a year-over-year rise of 14%, mostly due to poultry product introductions in Latin America, along with an increase in domestic and international demand.
Net sales in the Mineral Nutrition segment rose 6% year over year to $62.1 million due to increased sales volume and higher average selling price. The top line surpassed our model’s projection of $61.9 million by a marginal 0.3%.
Net sales in the Performance Products segment fell 1% to $19.6 million as a result of the decreased demand for personal care product ingredients and industrial chemicals. The top line surpassed our model’s projection of $18 million by 8.9%.
Margins
Phibro’s fiscal fourth-quarter gross profit rose 13.8% year over year to $87.2 million. The gross margin expanded 188 basis points (bps) to 31.9% despite a 4.3% rise in the cost of goods sold.
SG&A expenses in the reported quarter were $68.7 million, up 29.9% from the year-ago quarter’s levels. The operating profit declined 21% year over year to $18.5 million and the operating margin contracted 252 bps to 6.8% in the quarter under review.
Financial Update
The company exited the fourth quarter of fiscal 2024 with cash and short-term investments of $114.6 million compared with $98.7 million at the end of the fiscal third quarter.
Cumulative net cash provided by operating activities at the end of fiscal 2024 was $87.6 million compared with $13.3 million in the year-ago period.
Fiscal 2025 Guidance
The company expects net sales to be between $1.04 billion and $1.09 billion. The Zacks Consensus Estimate for the metric is pegged at $1.25 billion.
Adjusted EPS is expected to be in the range of $1.22-$1.37. The Zacks Consensus Estimate for the same is pegged at $1.43.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted -11.46% due to these changes.
VGM Scores
At this time, Phibro has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions indicates a downward shift. It comes with little surprise Phibro has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Phibro belongs to the Zacks Medical - Products industry. Another stock from the same industry, Medtronic (MDT - Free Report) , has gained 1.4% over the past month. More than a month has passed since the company reported results for the quarter ended July 2024.
Medtronic reported revenues of $7.92 billion in the last reported quarter, representing a year-over-year change of +2.8%. EPS of $1.23 for the same period compares with $1.20 a year ago.
For the current quarter, Medtronic is expected to post earnings of $1.24 per share, indicating a change of -0.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Medtronic has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Phibro (PAHC) Up 2.9% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Phibro Animal Health (PAHC - Free Report) . Shares have added about 2.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Phibro due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Phibro Q4 Earnings and Revenues Beat, Operating Margin Down
Phibro Animal Health delivered adjusted earnings per share (EPS) of 41 cents in the fourth quarter of fiscal 2024, up 7.9% from the year-ago quarter’s level. The bottom line beat the Zacks Consensus Estimate by 20.6%.
Without adjustments, the GAAP EPS in the quarter was 2 cents, down 92.9% from the year-ago quarter’s figure.
PAHC reported full-year adjusted EPS of $1.19, reflecting a 1.7% decline from fiscal 2023. The figure beat the Zacks Consensus Estimate by 6.25%.
Net Sales
In the quarter under review, net sales totaled $273.2 million, up 7.1% from the year-ago quarter’s level. The figure also topped the Zacks Consensus Estimate by 4.1%.
For fiscal 2024, the company reported net sales of $1.02 billion, up 4.1% from the prior-year level. The figure beat the Zacks Consensus Estimate by a marginal 1%.
Segmental Sales
The company conducts its operations via three segments — Animal Health, Mineral Nutrition and Performance Products.
In the fourth quarter of fiscal 2024, Animal Health’s net sales increased 8% to $191.5 million.
Within the segment, net sales of medicated feed additives (MFAs) and others reflected 12% year-over-year growth. The top line surpassed our model’s projection of $181.8 million by 5.3%.
Nutritional specialty product sales decreased 4%, primarily due to lower demand for dairy products. However, net vaccine sales showed a year-over-year rise of 14%, mostly due to poultry product introductions in Latin America, along with an increase in domestic and international demand.
Net sales in the Mineral Nutrition segment rose 6% year over year to $62.1 million due to increased sales volume and higher average selling price. The top line surpassed our model’s projection of $61.9 million by a marginal 0.3%.
Net sales in the Performance Products segment fell 1% to $19.6 million as a result of the decreased demand for personal care product ingredients and industrial chemicals. The top line surpassed our model’s projection of $18 million by 8.9%.
Margins
Phibro’s fiscal fourth-quarter gross profit rose 13.8% year over year to $87.2 million. The gross margin expanded 188 basis points (bps) to 31.9% despite a 4.3% rise in the cost of goods sold.
SG&A expenses in the reported quarter were $68.7 million, up 29.9% from the year-ago quarter’s levels. The operating profit declined 21% year over year to $18.5 million and the operating margin contracted 252 bps to 6.8% in the quarter under review.
Financial Update
The company exited the fourth quarter of fiscal 2024 with cash and short-term investments of $114.6 million compared with $98.7 million at the end of the fiscal third quarter.
Cumulative net cash provided by operating activities at the end of fiscal 2024 was $87.6 million compared with $13.3 million in the year-ago period.
Fiscal 2025 Guidance
The company expects net sales to be between $1.04 billion and $1.09 billion. The Zacks Consensus Estimate for the metric is pegged at $1.25 billion.
Adjusted EPS is expected to be in the range of $1.22-$1.37. The Zacks Consensus Estimate for the same is pegged at $1.43.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted -11.46% due to these changes.
VGM Scores
At this time, Phibro has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions indicates a downward shift. It comes with little surprise Phibro has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Phibro belongs to the Zacks Medical - Products industry. Another stock from the same industry, Medtronic (MDT - Free Report) , has gained 1.4% over the past month. More than a month has passed since the company reported results for the quarter ended July 2024.
Medtronic reported revenues of $7.92 billion in the last reported quarter, representing a year-over-year change of +2.8%. EPS of $1.23 for the same period compares with $1.20 a year ago.
For the current quarter, Medtronic is expected to post earnings of $1.24 per share, indicating a change of -0.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Medtronic has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.