Phibro Animal Health (PAHC Quick QuotePAHC - Free Report) delivered adjusted earnings per share (EPS) of 63 cents in the third quarter of fiscal 2025 compared with 31 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 21.1%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).

Without adjustments, GAAP EPS in the quarter was 51 cents compared with 21 cents in the prior-year period.

PAHC’s Q3 Revenues

Net sales in the quarter totaled $347.8 million, up 23.8% from the year-ago quarter’s level. The figure missed the Zacks Consensus Estimate by 0.7%.

Following the announcement, PAHC shares rose 2.2% in after-hours trading yesterday. 

Phibro’s Q3 Segmental Sales

The company conducts its operations via three segments — Animal Health, Mineral Nutrition and Performance Products.

In the third quarter of fiscal 2025, Animal Health’s net sales increased 42% to $258.4 million. The figure fell behind our model’s projection of $262.2 million.

Within the segment, net sales of medicated feed additives (MFAs) and others reflected 68% year-over-year growth, driven by incremental revenues of $77 million from sales of products from the Zoetis MFA portfolio acquired on Oct. 31, 2024.

Nutritional specialty product sales rose 8% due to increased domestic dairy demand and higher sales of microbial and companion animal products.

Net vaccine sales showed a year-over-year rise of 1%, primarily due to the continued growth of poultry products in Latin America.

Net sales in the Mineral Nutrition segment rose 4% year over year to $66.8 million due to higher average selling prices for zinc and trace minerals. Our model forecast was $71.4 million.

Net sales in the Performance Products segment rose 28% to $22.7 million due to higher demand for the ingredients used in personal care products. This also surpassed our model’s projection of $19 million.

PAHC’s Q3 Margin Performance

Phibro’s fiscal third-quarter gross profit rose 31.3% year over year to $104.5 million. The gross margin contracted 20 basis points (bps) to 30.1% despite a 32.5% rise in the cost of goods sold.

Selling, general and administrative expenses in the reported quarter were $71.1 million, up 19.1% from the year-ago quarter’s levels. The operating profit totaled $33.4 million, an increase of 67.8% year over year. The operating margin expanded 204 bps year over year to 9.6%.   

PAHC’s Financial Update

The company exited the third quarter of fiscal 2025 with cash and short-term investments of $70.4 million compared with $67.1 million at the end of the second quarter.

Cumulative net cash provided by operating activities at the end of the third quarter was $58.9 million compared with $59.2 million in the year-ago period.

Phibro’s Updated Fiscal 2025 Guidance

For fiscal 2025, the company now expects net sales in the range of $1.26-$1.29 billion (earlier 1.25-$1.30 billion), implying 25% growth. The Zacks Consensus Estimate for the metric is pegged at $1.28 billion.

Adjusted EPS is expected in the range of $1.96-$2.09 (earlier 1.87-$2.01). The revised outlook indicates a 70% improvement compared to the earlier projected 63%. The Zacks Consensus Estimate is pegged at $1.94.

Our Take on PAHC

Phibro delivered an earnings beat and a revenue miss in the third quarter of fiscal 2025. However, the top line increased on a year-over-year basis. The company’s performance reflects the successful integration of the Zoetis MFA business and the initial positive impact of Phibro Forward initiatives, including benefits from actions such as SKU rationalization, enhanced procurement capabilities and manufacturing improvements. The Animal Health segment was a key growth driver. Additionally, the upbeat outlook for fiscal 2025 is encouraging.

Meanwhile, the contraction of the gross margin in the quarter does not bode well. The timing of orders in MFA and Other product sales and Vaccines also restricted growth. Phibro remains vigilant in the face of the evolving global trade landscape.

PAHC’s Zacks Rank & Key Picks

Phibro currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are AngioDynamics (ANGO Quick QuoteANGO - Free Report) , Integer Holdings Corporation (ITGR Quick QuoteITGR - Free Report) and Boston Scientific (BSX Quick QuoteBSX - Free Report) .

AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 70.9%.

Integer Holdings, sporting a Zacks Rank #1 at present, posted a first-quarter 2025 adjusted EPS of $1.31, exceeding the Zacks Consensus Estimate by 3.1%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%.

ITGR has an estimated long-term earnings growth rate of 20.8% compared with the industry’s 14.3% growth. The company’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 2.8%.

Boston Scientific, currently carrying a Zacks Rank #2, reported a first-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion topped the Zacks Consensus Estimate by 2.3%.

BSX has an estimated 2025 earnings growth rate of 15.9% compared with the S&P 500 composite’s 11.9% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.8%.