Don't Overlook Phibro (PAHC) International Revenue Trends While Assessing the Stock

Have you evaluated the performance of Phibro Animal Health's (PAHC) international operations for the quarter ending September 2025? Given the extensive global presence of this maker of animal health products and nutritional supplements, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

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.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing 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.

For the quarter, the company's total revenue amounted to $363.9 million, experiencing an increase of 39.8% year over year. Next, we'll explore the breakdown of PAHC's international revenue to understand the importance of its overseas business operations.

A Look into PAHC's International Revenue Streams

Asia Pacific generated $29.38 million in revenues for the company in the last quarter, constituting 8.1% of the total. This represented a surprise of +59.32% compared to the $18.44 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $35.03 million (9.3%), and in the year-ago quarter, it contributed $14.61 million (5.6%) to the total revenue.

Of the total revenue, $87.23 million came from Latin America and Canada during the last fiscal quarter, accounting for 24%. This represented a surprise of -33.19% as analysts had expected the region to contribute $130.56 million to the total revenue. In comparison, the region contributed $84.07 million, or 22.2%, and $71.15 million, or 27.3%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Europe, Middle East and Africa contributed $44.94 million in revenue, making up 12.4% of the total revenue. When compared to the consensus estimate of $37.31 million, this meant a surprise of +20.46%. Looking back, Europe, Middle East and Africa contributed $57.61 million, or 15.2%, in the previous quarter, and $31.13 million, or 12%, in the same quarter of the previous year.

Anticipated Revenues in Overseas Markets

The current fiscal quarter's total revenue for Phibro, as projected by Wall Street analysts, is expected to reach $357.21 million, reflecting an increase of 15.5% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia Pacific is anticipated to contribute 5.9% or $20.95 million, Latin America and Canada 27% or $96.53 million and Europe, Middle East and Africa 10.3% or $36.92 million.

For the full year, the company is projected to achieve a total revenue of $1.46 billion, which signifies a rise of 12.9% from the last year. The share of this revenue from various regions is expected to be: Asia Pacific at 6.8% ($99.68 million), Latin America and Canada at 26.6% ($389.15 million), and Europe, Middle East and Africa at 11.7% ($170.97 million).

Final Thoughts

Phibro's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.

Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.

Phibro currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Assessing Phibro Animal Health's Stock Price Movement in Recent Times

The stock has witnessed an increase of 13.6% over the past month versus the Zacks S&P 500 composite's an increase of 1.5%. In the same interval, the Zacks Medical sector, to which Phibro belongs, has registered an increase of 5.3%. Over the past three months, the company's shares saw an increase of 38.9%, while the S&P 500 increased by 4.5%. In comparison, the sector experienced an increase of 10% during this timeframe.

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This article originally published on Zacks Investment Research (zacks.com).

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