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Phibro Stock (PAHC) Rises 7% YTD: Will the Run Continue?
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Phibro Animal Health Corporation’s (PAHC - Free Report) shares have increased 7% year to date compared with the industry’s rise of 3.7%. The Medical sector has gained 5.9% in the said time frame. The company has a market capitalization of $497.38 million.
The company benefits from high-value new product introductions in the vaccine product line. With its extensive global presence, Phibro has strong potential to expand into emerging markets.
This Zacks Rank 2 (Buy) stock earnings is expected to grow 2.4% in the next five years. PAHC’s ROE for the trailing 12 months was 16.7%, better than the industry average of (9.6%).
What’s Aiding Phibro?
The Zacks Consensus Estimate for PAHC’s 2024 earnings has moved 4.7% north to $1.12. The consensus estimate for 2024 revenues is pegged at $992.3 million, indicating a year-over-year improvement of 1.5%.
Phibro’s key animal health products, including MFAs (Medicated Feed Additives) and nutritional specialty products, facilitate in enhancing 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.
During the second quarter of fiscal 2024, Animal Health saw a robust 31% increase in vaccine net sales. The company registered a 5% increase in MFAs and others driven by the increased sales of processing aids used in the ethanol fermentation industry as well as demand for the products in various international regions.
Phibro is focusing on new developments along with incremental registrations and growing volumes of existing nutritional specialties and 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 that manufactures and markets autogenous vaccines against animal diseases for swine, poultry and aquaculture.
Image Source: Zacks Investment Research
The vaccine product line witnessed a robust 31% improvement in the second quarter of fiscal 2024, driven by a strong uptake across various regions, especially in Latin America, and also benefitted from growing domestic demand. The company launched new commercial vaccines and looks forward to bringing additional vaccines to the Americas.
What’s Ahead for the Stock?
Phibro’s existing operations and established sales, marketing and distribution network in over 80 countries provide it 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. For the fiscal 2024, our model forecasts sales in Latin America and Canada to improve 4.9%. Europe, Middle East & Africa and Asia Pacific regions are expected to deliver sales growth of 3.6% and 8.2%, respectively, in the same time frame.
Phibro’s mineral nutrition products strengthen an animal’s diet and help maintain its optimal health. The company anticipates continued growth in the Animal Health business in the remaining half of the year. Further, sales of Mineral Nutrition and Performance Products are also likely to improve as inventory rebalances and demand rebounds.
Further, upbeat fiscal 2024 guidance instills investors’ optimism. The company expects net sales between $980 million and $1.02 billion. Adjusted earnings per share is expected in the range of $1.04-$1.16.
Estimate Trends
The Zacks Consensus Estimate for PAHC’s 2024 and 2025 has moved 4.7% and 0.8% north, respectively, in the past 90 days, reflecting analyst optimism.
Cardinal Health, carrying a Zacks Rank #2 at present, has a long-term estimated earnings growth rate of 14.2% compared with the industry’s 11.6%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cardinal Health’s shares have gained 66.8% compared with the industry’s 20.8% rise in the past year.
Stryker, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 10.3%. SYK’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.1%.
Shares of the company have increased 30.3% compared with the industry’s 8.9% rise in the past year.
DaVita, sporting a Zacks Rank #1 at present, has an estimated long-term earnings growth rate of 12.1% compared with the industry’s 11.9%. DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 35.6%.
Shares of DVA have surged 81.1% compared with the industry’s 27.1% rise in the past year.
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Phibro Stock (PAHC) Rises 7% YTD: Will the Run Continue?
Phibro Animal Health Corporation’s (PAHC - Free Report) shares have increased 7% year to date compared with the industry’s rise of 3.7%. The Medical sector has gained 5.9% in the said time frame. The company has a market capitalization of $497.38 million.
The company benefits from high-value new product introductions in the vaccine product line. With its extensive global presence, Phibro has strong potential to expand into emerging markets.
This Zacks Rank 2 (Buy) stock earnings is expected to grow 2.4% in the next five years. PAHC’s ROE for the trailing 12 months was 16.7%, better than the industry average of (9.6%).
What’s Aiding Phibro?
The Zacks Consensus Estimate for PAHC’s 2024 earnings has moved 4.7% north to $1.12. The consensus estimate for 2024 revenues is pegged at $992.3 million, indicating a year-over-year improvement of 1.5%.
Phibro’s key animal health products, including MFAs (Medicated Feed Additives) and nutritional specialty products, facilitate in enhancing 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.
During the second quarter of fiscal 2024, Animal Health saw a robust 31% increase in vaccine net sales. The company registered a 5% increase in MFAs and others driven by the increased sales of processing aids used in the ethanol fermentation industry as well as demand for the products in various international regions.
Phibro is focusing on new developments along with incremental registrations and growing volumes of existing nutritional specialties and 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 that manufactures and markets autogenous vaccines against animal diseases for swine, poultry and aquaculture.
The vaccine product line witnessed a robust 31% improvement in the second quarter of fiscal 2024, driven by a strong uptake across various regions, especially in Latin America, and also benefitted from growing domestic demand. The company launched new commercial vaccines and looks forward to bringing additional vaccines to the Americas.
What’s Ahead for the Stock?
Phibro’s existing operations and established sales, marketing and distribution network in over 80 countries provide it 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. For the fiscal 2024, our model forecasts sales in Latin America and Canada to improve 4.9%. Europe, Middle East & Africa and Asia Pacific regions are expected to deliver sales growth of 3.6% and 8.2%, respectively, in the same time frame.
Phibro’s mineral nutrition products strengthen an animal’s diet and help maintain its optimal health. The company anticipates continued growth in the Animal Health business in the remaining half of the year. Further, sales of Mineral Nutrition and Performance Products are also likely to improve as inventory rebalances and demand rebounds.
Further, upbeat fiscal 2024 guidance instills investors’ optimism. The company expects net sales between $980 million and $1.02 billion. Adjusted earnings per share is expected in the range of $1.04-$1.16.
Estimate Trends
The Zacks Consensus Estimate for PAHC’s 2024 and 2025 has moved 4.7% and 0.8% north, respectively, in the past 90 days, reflecting analyst optimism.
Key Picks
Some other top-ranked stocks in the broader medical space are Cardinal Health (CAH - Free Report) , Stryker (SYK - Free Report) and DaVita (DVA - Free Report) .
Cardinal Health, carrying a Zacks Rank #2 at present, has a long-term estimated earnings growth rate of 14.2% compared with the industry’s 11.6%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cardinal Health’s shares have gained 66.8% compared with the industry’s 20.8% rise in the past year.
Stryker, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 10.3%. SYK’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.1%.
Shares of the company have increased 30.3% compared with the industry’s 8.9% rise in the past year.
DaVita, sporting a Zacks Rank #1 at present, has an estimated long-term earnings growth rate of 12.1% compared with the industry’s 11.9%. DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 35.6%.
Shares of DVA have surged 81.1% compared with the industry’s 27.1% rise in the past year.