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Why Is Phibro (PAHC) Down 6.7% Since Last Earnings Report?

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A month has gone by since the last earnings report for Phibro Animal Health (PAHC - Free Report) . Shares have lost about 6.7% in that time frame, underperforming the S&P 500.

But investors have to be wondering, 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 latest earnings report in order to get a better handle on the important drivers.

PAHC Q4 Earnings & Revenues Beat Estimates 

Phibro Animal Health reported adjusted earnings of 85 cents per share for the fourth quarter of fiscal 2026, up 35% year over year. The bottom line beat the Zacks Consensus Estimate of 72 cents by 18.1%.

PAHC Revenues

Net sales increased 5% year over year to $396.7 million and surpassed the consensus estimate by 8.4%. Higher sales, favorable product mix and tariff recoveries supported profitability. Adjusted gross margin expanded 380 basis points to 34.6%.

PAHC Issues Fiscal 2027 Guidance

For fiscal 2027, Phibro expects net sales between $1.55 billion and $1.60 billion, representing about 4% growth at the midpoint. The Zacks Consensus Estimate for the metric is pegged at $1.58 billion.

Adjusted earnings are expected in the range of $3.41-$3.59 per share, representing 9% growth at the midpoint. The Zacks Consensus Estimate is pegged at $3.43.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

VGM Scores

At this time, Phibro has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Phibro has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

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