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Phibro Animal Health PAHC delivered adjusted earnings per share (EPS) of 57 cents in the fourth quarter of fiscal 2025 compared with 41 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 9.62%.
Without adjustments, GAAP EPS in the quarter was 42 cents compared with 2 cents in the prior-year period.
PAHC reported full-year adjusted EPS of $2.09, which rose 75.6% from the fiscal 2024 figure. The figure outpaced the Zacks Consensus Estimate by 2.45%.
Net sales in the quarter totaled $378.7 million, up 38.6% from the year-ago quarter’s level. The figure topped the Zacks Consensus Estimate by 4.86%.
For fiscal 2025, the company reported net sales of $1.30 billion, up 27.4% from the prior-year level. The figure beat the Zacks Consensus Estimate by 1.56%.
Following the announcement, PAHC shares rose 18% in after-hours trading yesterday.
The company conducts its operations via three segments — Animal Health, Mineral Nutrition and Performance Products.
In the fourth quarter of fiscal 2025, Animal Health’s net sales increased 53% to $292.5 million. Our model’s projection was $264.4 million.
Phibro Animal Health Corporation price-consensus-eps-surprise-chart | Phibro Animal Health Corporation Quote
Within the segment, net sales of medicated feed additives (MFAs) and others reflected 77% year-over-year growth, driven by incremental revenues of $94.5 million from the Zoetis MFA portfolio and increased demand for the MFAs in international regions.
Nutritional specialty product sales rose 11% due to higher sales of microbial and companion animal products.
Net vaccine sales showed a year-over-year rise of 21% due to continued growth of poultry products in Latin America and higher international demand.
Net sales in the Mineral Nutrition segment rose 3% year over year to $64.2 million, mainly due to an increase in demand for copper and trace minerals. However, the figure lagged our model’s forecast of $74.3 million.
Net sales in the Performance Products segment rose 13% to $22.1 million due to higher demand for the ingredients used in personal care products. Our model projected $20.6 million from this segment.
Phibro’s fiscal fourth-quarter gross profit rose 26.2% year over year to $110 million. However, the gross margin contracted 287 basis points (bps) to 29.1% due to a 44.5% rise in the cost of goods sold.
Selling, general and administrative expenses in the reported quarter were $76.3 million, up 11.1% from the year-ago quarter’s levels. The operating profit totaled $33.7 million, an increase of 82.2% year over year. The operating margin expanded 213 bps year over year to 8.9%.
The company exited the fourth quarter of fiscal 2025 with cash and short-term investments of $77 million compared with $114.6 million at the end of fiscal 2024.
Cumulative net cash provided by operating activities at the end of fiscal 2025 was $80.1 million compared with $87.6 million in the year-ago period.
For fiscal 2026, the company expects net sales in the range of $1.43-$1.48 billion, implying 12% growth. The Zacks Consensus Estimate for the metric is pegged at $1.41 billion.
Adjusted EPS is expected in the band of $2.52-$2.70, which indicates a 25% increase. The Zacks Consensus Estimate stands at $2.30.
Phibro ended the fiscal fourth quarter on a solid note, with both earnings and revenues beating estimates. The performance reflects strength in its Animal Health portfolio, with sustained demand across MFAs, nutritional specialties and vaccines. The acquired Zoetis MFA portfolio also exceeded the company’s expectations. Phibro’s fiscal 2026 guidance reflects continued confidence in its trajectory, supported by portfolio strength, disciplined execution and momentum across all segments.
Meanwhile, the contraction of the gross margin in the quarter is discouraging.
Phibro currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Medpace Holdings MEDP, GeneDx Holdings WGS and Boston Scientific BSX.
Medpace Holdings, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2025 EPS of $3.1, which beat the Zacks Consensus Estimate by 3.33%. Revenues of $603.3 million topped the consensus mark by 11.48%. You can see the complete list of today’s Zacks #1 Rank stocks here.
MEDP has a historical five-year earnings growth rate of 30.9% compared with the S&P 500 composite’s 10.1% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 13.87%.
GeneDx Holdings, carrying a Zacks Rank #2 at present, posted a second-quarter 2025 adjusted EPS of 50 cents, exceeding the Zacks Consensus Estimate by a remarkable 400%. Revenues of $102.7 million surpassed the Zacks Consensus Estimate by 21.24%.
WGS has an estimated earnings growth rate of 79.6% for 2026 compared with the industry’s 18.6% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 231.40%.
Boston Scientific, currently carrying a Zacks Rank #2, reported a second-quarter 2025 adjusted EPS of 75 cents, which topped the Zacks Consensus Estimate by 4.2%.
BSX has a historical five-year earnings growth rate of 13.3% compared with the industry’s 2.7% growth. The company’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 8.11%.
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This article originally published on Zacks Investment Research (zacks.com).
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