A month has gone by since the last earnings report for Phibro Animal Health (PAHC Quick QuotePAHC - Free Report) . Shares have lost about 12.3% 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 its most recent earnings report in order to get a better handle on the important catalysts.

Phibro Q1 Earnings Miss Estimates, Margins Down

Phibro’s adjusted earnings per share of 25 cents for the first quarter of fiscal 2022 reflected a 7.4% decline from the year-ago adjusted figure. The metric missed the Zacks Consensus Estimate by 10.7%.

Meanwhile, without adjustments, GAAP earnings per share for the first quarter was 16 cents, plunging 47% from the year-ago figure.

Net Sales

In the quarter under review, net sales totaled $214.7 million, up 10% from the year-ago quarter.

During the fiscal first quarter, Animal Health net sales increased 10% to $141 million. Within this segment, sales of medicated feed additives (MFAs) and others were $83.8 million, reflecting 6% year-over-year growth, driven by higher international demand, primarily poultry and cattle products in Latin America and Southeast Asia regions. However, this was partially offset by the timing of certain domestic and other international customer orders.

Within Animal Health, nutritional specialty product sales rose 10% to $36 million, primarily on international demand in dairy products.

Apart from this, net vaccine sales totaled $21.2 million, showing a rise of 25% year over year on growth across all major markets but primarily stronger demand in Eastern Europe and India.

Net sales at the Mineral Nutrition segment rose 6% year over year to $54.4 million on higher average selling prices, partially offset by lower volumes.

Net sales at the Performance Products segment rose 25% to $19.2 million, driven by strong demand for copper-based products along with increased selling pricing correlated to underlying raw material costs.

Margins

Phibro’s fiscal first-quarter gross profit rose 0.9% year over year to $64.7 million. Gross margin contracted 270 basis points (bps) to 30.1%.

Selling, general and administrative expenses in the reported quarter were $50.1 million, up 3.5% from the year-ago quarter.

Operating profit fell 7% year over year to $14.6 million and operating margin contracted 124 bps to 6.8% in the quarter under review.

Financial Update

The company exited the fiscal first quarter with cash and short-term investments in hand of $97 million compared with $93 million at the end of fourth-quarter fiscal 2021.

Cumulative net cash used in operating activities at the end of the first quarter was $20.7 million compared with $13.6 million a year ago.

Cumulative capital expenditure amounted to $7.4 million at the end of the first quarter of fiscal 2021, unchanged from the year-ago figure.

Outlook

Phibro has updated its fiscal 2022 financial guidance.

The company projects net sales for fiscal 2022 in the range of $860.0-$890.0 million, an improvement from the earlier-provided band of $840-$870 million.

Adjusted earnings per share was reiterated in the band of $1.25-$1.32. The Zacks Consensus Estimate for the metric is pegged at $1.34.

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.