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New Animal Health Products, Vaccine Sales Support PAHC Stock
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Phibro Animal Health's (PAHC - Free Report) diversified product portfolio and wide presence in key growth areas bolster our confidence in the stock. The stock carries a Zacks Rank #2 (Buy).
Factors to Drive PAHC's Growth
Phibro’s existing operations and established sales, marketing and distribution network in over 80 countries provide ample scope to take advantage of global growth opportunities. Outside the United States, Phibro’s global footprint extends to key high-growth regions (countries where the livestock production growth rate is expected to be higher than the average growth rate), including Brazil and other countries in South America, China, India and Southeast Asia, Mexico, Turkey, Australia, Canada, Poland and other Eastern European countries, and South Africa and other countries in Africa.
Phibro is focusing on new developments, incremental registrations and growing volumes of existing vaccine technologies. The company also makes significant investments to expand vaccine manufacturing capacity at several locations. Recently, Phibro began operations at a new vaccine production facility in Guarulhos, Brazil, which manufactures and markets autogenous vaccines against animal diseases for swine, poultry and aquaculture.
Phibro’s key animal health products, including MFAs (Medicated Feed Additives) and nutritional specialty products, facilitate enhanced animal nutrition. The company’s leading product franchise, Stafac/V-Max/Eskalin, is approved in more than 30 countries for use in poultry and swine. Similarly, the company’s nutritional product offerings, such as OmniGen-AF and Animate, are used increasingly in the global dairy industry. The company also manufactures vaccines that protect animals from both viral and bacterial disease challenges. Moreover, the company is committed to developing its companion animal business and pipeline. These are key growth areas for Phibro both in the short and medium term, and it has been actively investing in these growth drivers to achieve its targets.
The stock has gained 14.1% in a year compared with the industry’s 21.8% rise. With the company strategically expanding through innovation and acquisitions, as well as expanding its business footprint, we expect the stock to continue its upward movement in the coming days.
In a challenging macro environment, the Mineral Nutrition business has been facing adverse movements in commodity prices and inventory positions. In fiscal 2024, Mineral Nutrition growth was flat year over year. While the margins may return to some historical levels as the fiscal year progresses, Phibro anticipates that volume recovery might be longer. Meanwhile, sales of Performance Products during fiscal 2024 also decreased 10% year over year owing to the reduced demand for personal care product ingredients and industrial chemicals. Our model estimate suggests a sales decline of 4.9% and 6% in Nutritional Specialities and Performance Products, respectively, for fiscal 2025.
Estimates for TransMedics’ 2024 earnings per share (EPS) have moved up 0.8% to $1.22 in the past 30 days. Shares of the company have soared 189.3% in the past year compared with the industry’s 20.7% growth. TMDX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 287.50%. In the last reported quarter, it delivered an earnings surprise of 66.67%.
Estimates for AxoGen’s 2024 loss per share have remained constant at 1 cent in the past 30 days. Shares of the company have surged 212.1% in the past year compared with the industry’s 20.7% growth. AXGN’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 96.5%. In the last reported quarter, it delivered an earnings surprise of 200%.
Estimates for OrthoPediatrics’ 2024 loss per share have declined to 92 cents from 96 cents in the past 30 days. In the past year, shares of KIDS have lost 5.8% against the industry’s 20.7% growth. In the last reported quarter, it delivered an earnings surprise of 25.81%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 26.81%.
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New Animal Health Products, Vaccine Sales Support PAHC Stock
Phibro Animal Health's (PAHC - Free Report) diversified product portfolio and wide presence in key growth areas bolster our confidence in the stock. The stock carries a Zacks Rank #2 (Buy).
Factors to Drive PAHC's Growth
Phibro’s existing operations and established sales, marketing and distribution network in over 80 countries provide ample scope to take advantage of global growth opportunities. Outside the United States, Phibro’s global footprint extends to key high-growth regions (countries where the livestock production growth rate is expected to be higher than the average growth rate), including Brazil and other countries in South America, China, India and Southeast Asia, Mexico, Turkey, Australia, Canada, Poland and other Eastern European countries, and South Africa and other countries in Africa.
Phibro is focusing on new developments, incremental registrations and growing volumes of existing vaccine technologies. The company also makes significant investments to expand vaccine manufacturing capacity at several locations. Recently, Phibro began operations at a new vaccine production facility in Guarulhos, Brazil, which manufactures and markets autogenous vaccines against animal diseases for swine, poultry and aquaculture.
Phibro’s key animal health products, including MFAs (Medicated Feed Additives) and nutritional specialty products, facilitate enhanced animal nutrition. The company’s leading product franchise, Stafac/V-Max/Eskalin, is approved in more than 30 countries for use in poultry and swine. Similarly, the company’s nutritional product offerings, such as OmniGen-AF and Animate, are used increasingly in the global dairy industry. The company also manufactures vaccines that protect animals from both viral and bacterial disease challenges. Moreover, the company is committed to developing its companion animal business and pipeline. These are key growth areas for Phibro both in the short and medium term, and it has been actively investing in these growth drivers to achieve its targets.
The stock has gained 14.1% in a year compared with the industry’s 21.8% rise. With the company strategically expanding through innovation and acquisitions, as well as expanding its business footprint, we expect the stock to continue its upward movement in the coming days.
Phibro Animal Health Corporation Price
Phibro Animal Health Corporation price | Phibro Animal Health Corporation Quote
Concerning Factor for PAHC
In a challenging macro environment, the Mineral Nutrition business has been facing adverse movements in commodity prices and inventory positions. In fiscal 2024, Mineral Nutrition growth was flat year over year. While the margins may return to some historical levels as the fiscal year progresses, Phibro anticipates that volume recovery might be longer. Meanwhile, sales of Performance Products during fiscal 2024 also decreased 10% year over year owing to the reduced demand for personal care product ingredients and industrial chemicals. Our model estimate suggests a sales decline of 4.9% and 6% in Nutritional Specialities and Performance Products, respectively, for fiscal 2025.
Other Key Picks
Some other top-ranked stocks in the broader medical space are TransMedics Group (TMDX - Free Report) , AxoGen (AXGN - Free Report) and OrthoPediatrics (KIDS - Free Report) . While TransMedics sports a Zacks Rank #1 (Strong Buy) at present, AxoGen and OrthoPediatrics carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for TransMedics’ 2024 earnings per share (EPS) have moved up 0.8% to $1.22 in the past 30 days. Shares of the company have soared 189.3% in the past year compared with the industry’s 20.7% growth. TMDX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 287.50%. In the last reported quarter, it delivered an earnings surprise of 66.67%.
Estimates for AxoGen’s 2024 loss per share have remained constant at 1 cent in the past 30 days. Shares of the company have surged 212.1% in the past year compared with the industry’s 20.7% growth. AXGN’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 96.5%. In the last reported quarter, it delivered an earnings surprise of 200%.
Estimates for OrthoPediatrics’ 2024 loss per share have declined to 92 cents from 96 cents in the past 30 days. In the past year, shares of KIDS have lost 5.8% against the industry’s 20.7% growth. In the last reported quarter, it delivered an earnings surprise of 25.81%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 26.81%.