Did you analyze how Phibro Animal Health (PAHC) fared in its international operations for the quarter ending June 2025? Given the widespread global presence of this maker of animal health products and nutritional supplements, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
Our review of PAHC's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The company's total revenue for the quarter stood at $378.7 million, increasing 38.6% year over year. Now, let's delve into PAHC's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
Exploring PAHC's International Revenue Patterns
Asia Pacific accounted for 9.3% of the company's total revenue during the quarter, translating to $35.03 million. Revenues from this region represented a surprise of +51.84%, with Wall Street analysts collectively expecting $23.07 million. When compared to the preceding quarter and the same quarter in the previous year, Asia Pacific contributed $28.22 million (8.1%) and $16.91 million (6.2%) to the total revenue, respectively.
Of the total revenue, $84.07 million came from Latin America and Canada during the last fiscal quarter, accounting for 22.2%. This represented a surprise of +15.38% as analysts had expected the region to contribute $72.87 million to the total revenue. In comparison, the region contributed $70.75 million, or 20.3%, and $70.17 million, or 25.7%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Europe, Middle East and Africa contributed $57.61 million in revenue, making up 15.2% of the total revenue. When compared to the consensus estimate of $49.15 million, this meant a surprise of +17.22%. Looking back, Europe, Middle East and Africa contributed $38.91 million, or 11.2%, in the previous quarter, and $32.41 million, or 11.9%, in the same quarter of the previous year.
Prospective Revenues in International Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that Phibro will post revenues of $318.61 million, which reflects an increase of 22.4% the same quarter in the previous year. The revenue contributions are expected to be 5% from Asia Pacific ($15.99 million), 37.8% from Latin America and Canada ($120.47 million) and 10.2% from Europe, Middle East and Africa ($32.45 million).
For the full year, a total revenue of $1.46 billion is expected for the company, reflecting an increase of 12.9% from the year before. The revenues from Asia Pacific, Latin America and Canada and Europe, Middle East and Africa are expected to make up 6%, 24.7%, and 10.8% of this total, corresponding to $87.1 million, $361.57 million, and $158.63 million, respectively.
Wrapping Up
Relying on international markets for revenues, Phibro faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Phibro, bearing a Zacks Rank #2 (Buy), is expected to outperform the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Phibro Animal Health's Recent Stock Market Performance
The stock has witnessed an increase of 42% over the past month versus the Zacks S&P 500 composite's an increase of 1.6%. In the same interval, the Zacks Medical sector, to which Phibro belongs, has registered an increase of 3.2%. Over the past three months, the company's shares saw an increase of 53.9%, while the S&P 500 increased by 9.7%. In comparison, the sector experienced an increase of 3.4% during this timeframe.
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Phibro Animal Health Corporation (PAHC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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