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Phibro (PAHC) Sales Hurt by Staffing Shortage Amid Pandemic
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Phibro Animal Health Corporation’s (PAHC - Free Report) existing operations and established sales are continuously being hurt by supply chain disruption and staffing problem amid the pandemic.The company currently carries a Zacks Rank #4 (Sell).
Phibro’s first quarter of fiscal 2022 earnings missed the Zacks Consensus Estimate. Revenues thoughup year over year declined sequentially. The business was hurt by continued supply chain and staffing problems. While Phirbo raised prices on selective products and realized increased volumes, these increases did not fully compensate for the higher cost of freight, labor materials and unfavorable currency movement. Combined, these items more than offset improvements in volume and price and reduced the company’s fiscal first-quarter margins.
Gross margin contracted 270 basis points (bps) to 30.1% while operating margin contracted 124 bps to 6.8% in the quarter under review.
Also, foreign exchange fluctuations and a stiff competitive landscape are other headwinds. The industries that the company caters to (especially swine and cattle customers) also faced issues like lack of processing availability and sudden drop in demand. The company had to close down many of its production facilities or operate at different rates due to the pandemic.
On a positive note, Phibro’s first-quarter fiscal 2021 revenues were up year over year backed by strong international demand for poultry and cattle products and stronger growth in the nutritional specialties and vaccine product lines. Growth in the Animal Health segment was driven by 6% growth in medicated feed additives (MFA) and other and even stronger growth in the nutritional specialties and vaccine product lines.
Internationally, the company is performing well. In the first quarter of fiscal 2022, Phibro registered growth in nutritional specialties driven by strong international growth in dairy products. The company has raised its revenue forecast for fiscal 2022 on improving business trends.
Year to date, Phibro has outperformed its industry. The stock has gained 13.9% compared with the industry’s 0.6% rise.
Key Picks
A few better-ranked stocks from the broader medical space are Chemed Corporation (CHE - Free Report) , Laboratory Corporation of America Holdings, or LabCorp (LH - Free Report) and Medpace Holdings, Inc. (MEDP - Free Report) , each carrying a Zacks Rank #2 (Buy).
Chemed has a long-term earnings growth rate of 7.7%. The company surpassed earnings estimates in three of the trailing four quarters and missed in one, delivering a surprise of 5.6%, on average.
Chemed has outperformed its industry over the past year. CHE has gained 3.7% against a 35.6% industry decline.
LabCorp reported third-quarter 2021 adjusted EPS of $6.82, which surpassed the Zacks Consensus Estimate by 42.9%. Revenues of $4.06 billion outpaced the Zacks Consensus Estimate by 13.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LabCorp has an estimated long-term growth rate of 10.6%. LH surpassed estimates in the trailing four quarters, the average surprise being 25.7%.
Medpace reported third-quarter 2021 adjusted EPS of $1.29, surpassing the Zacks Consensus Estimate by 20.6%. Revenues of $295.57 million beat the Zacks Consensus Estimate by 1.2%.
Medpace has an estimated long-term growth rate of 16.4%. MEDP surpassed estimates in the trailing four quarters, the average surprise being 11.9%.
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Phibro (PAHC) Sales Hurt by Staffing Shortage Amid Pandemic
Phibro Animal Health Corporation’s (PAHC - Free Report) existing operations and established sales are continuously being hurt by supply chain disruption and staffing problem amid the pandemic.The company currently carries a Zacks Rank #4 (Sell).
Phibro’s first quarter of fiscal 2022 earnings missed the Zacks Consensus Estimate. Revenues thoughup year over year declined sequentially. The business was hurt by continued supply chain and staffing problems. While Phirbo raised prices on selective products and realized increased volumes, these increases did not fully compensate for the higher cost of freight, labor materials and unfavorable currency movement. Combined, these items more than offset improvements in volume and price and reduced the company’s fiscal first-quarter margins.
Gross margin contracted 270 basis points (bps) to 30.1% while operating margin contracted 124 bps to 6.8% in the quarter under review.
Phibro Animal Health Corporation Price
Phibro Animal Health Corporation price | Phibro Animal Health Corporation Quote
Also, foreign exchange fluctuations and a stiff competitive landscape are other headwinds. The industries that the company caters to (especially swine and cattle customers) also faced issues like lack of processing availability and sudden drop in demand. The company had to close down many of its production facilities or operate at different rates due to the pandemic.
On a positive note, Phibro’s first-quarter fiscal 2021 revenues were up year over year backed by strong international demand for poultry and cattle products and stronger growth in the nutritional specialties and vaccine product lines. Growth in the Animal Health segment was driven by 6% growth in medicated feed additives (MFA) and other and even stronger growth in the nutritional specialties and vaccine product lines.
Internationally, the company is performing well. In the first quarter of fiscal 2022, Phibro registered growth in nutritional specialties driven by strong international growth in dairy products. The company has raised its revenue forecast for fiscal 2022 on improving business trends.
Year to date, Phibro has outperformed its industry. The stock has gained 13.9% compared with the industry’s 0.6% rise.
Key Picks
A few better-ranked stocks from the broader medical space are Chemed Corporation (CHE - Free Report) , Laboratory Corporation of America Holdings, or LabCorp (LH - Free Report) and Medpace Holdings, Inc. (MEDP - Free Report) , each carrying a Zacks Rank #2 (Buy).
Chemed has a long-term earnings growth rate of 7.7%. The company surpassed earnings estimates in three of the trailing four quarters and missed in one, delivering a surprise of 5.6%, on average.
Chemed has outperformed its industry over the past year. CHE has gained 3.7% against a 35.6% industry decline.
LabCorp reported third-quarter 2021 adjusted EPS of $6.82, which surpassed the Zacks Consensus Estimate by 42.9%. Revenues of $4.06 billion outpaced the Zacks Consensus Estimate by 13.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LabCorp has an estimated long-term growth rate of 10.6%. LH surpassed estimates in the trailing four quarters, the average surprise being 25.7%.
Medpace reported third-quarter 2021 adjusted EPS of $1.29, surpassing the Zacks Consensus Estimate by 20.6%. Revenues of $295.57 million beat the Zacks Consensus Estimate by 1.2%.
Medpace has an estimated long-term growth rate of 16.4%. MEDP surpassed estimates in the trailing four quarters, the average surprise being 11.9%.