It has been about a month since the last earnings report for Phibro Animal Health (PAHC Quick QuotePAHC - Free Report) . Shares have lost about 6.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Phibro due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Phibro Q4 Earnings Match Estimates, Margins Down

Phibro adjusted earnings per share of 32 cents in the fourth quarter of fiscal 2021 reflected a rise of 88.2% from the year-ago adjusted figure. The metric was in line with the Zacks Consensus Estimate of 32 cents

Meanwhile, without adjustments, GAAP earnings per share for the fourth quarter was 42 cents, showing 200% surge from the year-ago count.

For fiscal 2021, adjusted earnings per share came in at $1.34, up 61% from the year-ago figure.

Net Sales

In the quarter under review, net sales totaled $220.3 million compared with the year-ago net sales of $185.9 million. The increase is primarily due to improvement in the Animal Health, Performance Products and Mineral Nutrition segments.

For 2021, net sales totaled $833.4 million, up 4.1% from the year-ago tally.

Segmental Sales Break-Up

During the fiscal fourth quarter, Animal Health net sales increased 20% to $146.7 million. Within this segment, sales of medicated feed additives (MFAs) and other were $18.6 million, reflecting 26% year-over-year growth, driven by higher domestic and international demand, primarily due to a level of recovery from the global pandemic. Within Animal Health, nutritional specialty product sales rose 18% to $36.8 million, primarily on international volume growth in dairy products.

Apart from this, net vaccine sales totaled $18.7 million, showing a rise of 1% year over year as domestic volume growth and increased demand in the Asia Pacific region were partially offset by challenging economic conditions in Eastern Europe.

Net sales at the Mineral Nutrition segment rose 14% year over year to $56.8 million on higher average selling prices.

Net sales at the Performance Products segment rose 23% to $16.7 million, driven by strong demand for copper-based products along with favorable product pricing related to underlying raw material costs.

Margins

Phibro’s fourth-quarter gross profit rose 15.2% year over year to $69.8 million. Gross margin contracted 91 basis points (bps) to 31.7%.

Selling, general and administrative expenses in the reported quarter were $50.7 million, up 19.6% from the year-ago quarter.

Operating profit rose 4.9% year over year to $19.1 million and operating margin contracted 112 bps to 8.7% in the quarter under review.

Financial Update

The company exited the fourth quarter of fiscal 2021 with cash and short-term investments in hand of $93 million compared with $91 million at the end of fourth-quarter 2020.

Year to date, cumulative net cash provided by operating activities at the end of the fourth quarter of fiscal 2021 was $48.3 million compared with $59.3 million a year ago.

Cumulative capital expenditure amounted to $29.3 million at the end of the fourth quarter of fiscal 2021, reflecting a decrease from the year-ago $34 million.

Outlook

Phibro has provided the fiscal 2022 financial guidance on improving business trends.

The company projects net sales for the fiscal 2022 in range of $840-$870 million.

Adjusted earnings per share is projected in band of $1.25-$1.32. The Zacks Consensus Estimate for the metric is pegged at $1.33.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.