Investors interested in Medical - Products stocks are likely familiar with Phibro Animal Health (PAHC) and GE HealthCare Technologies (GEHC) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores w ...

Have you assessed how the international operations of Phibro Animal Health (PAHC) performed in the quarter ended December 2024? For this maker of animal health products and nutritional supplements, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financi ...

Phibro Animal Health (PAHC) delivered adjusted earnings per share (EPS) of 54 cents in the second quarter of fiscal 2025 compared with 33 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 28.5%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Without adjustments, the GAAP EPS in the quarter was 8 cents compared with 3 cents in the prior-year period.Net sales in the quarter totaled $309.3 million, up 23.8% from the year-ago quarter’s level. The figure a ...

Financial Performance and Key Metrics - Consolidated net sales for Q2 2025 were $309.3 million, reflecting a 24% increase year-over-year [14] - Adjusted EBITDA surged 64% to $48.7 million, driven by strong demand and the integration of the Zoetis MFA portfolio [15][10] - GAAP net income and diluted EPS increased significantly due to improved gross margins and lower input costs, despite higher SG&A expenses [15] Business Segment Performance - The animal health segment reported net sales of $229.4 million, a 33% increase year-over-year, with MFA and other product sales rising 47% [16][10] - Nutritional specialty products net sales increased by 11%, while vaccine sales grew by 12% [19][11] - Mineral Nutrition segment net sales were $63.3 million, reflecting a 3% increase, and performance products segment net sales grew by 7% [21][22] Market Data and Key Metrics - The broader protein industry remains strong, with expectations for continued growth despite challenges such as avian influenza and geopolitical factors [13] - The company reported a net leverage ratio of 2.9 times, based on $693 million of net debt [25] Company Strategy and Industry Competition - The company is focused on the Phibro Forward initiative to drive operational excellence and identify growth opportunities [9][12] - The integration of the Zoetis MFA portfolio is progressing smoothly, with a focus on customer support and onboarding new colleagues [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating headwinds and capitalizing on opportunities, with a positive outlook for the remainder of fiscal 2025 [13][12] - The company updated its fiscal year 2025 guidance, projecting total net sales of $1.25 billion to $1.3 billion, representing a growth range of 23% to 28% [29] Other Important Information - The company generated $15 million of positive free cash flow for the twelve months ended December 31, 2024 [23] - The company paid a quarterly dividend of twelve cents per share, totaling $4.9 million [25] Q&A Session Summary Question: Guidance update and EPS increase drivers - The increase in EPS guidance is primarily driven by the addition of Zoetis, with continued strong performance in the legacy business contributing as well [35][36] Question: Animal health performance trends - The company noted strong performance across all protein categories, with customers focused on maintaining animal health for better market performance [37][38] Question: MFA acquisition revenue guidance and surprises - The revenue guidance aligns with expectations, and higher profitability was noted due to improved performance and timing of hiring [40][44] Question: Integration of Zoetis MFA portfolio - Integration is progressing smoothly, with positive feedback from customers and no plans for headcount reductions related to the acquisition [55][57] Question: Tariff implications and demand trends - The impact of tariffs is expected to be minimal, and demand trends across key species groups remain positive, with most markets showing strong performance [61][64]

Phibro Animal Health Corporation Financial Results Fiscal Year 2025 Second Quarter Ended December 31, 2024 February 6, 2025 Webcast and Conference Call Webcast and Conference Call February 6, 2025 U.S. toll-free +1.888.330.2022 Cautionary Statement Regarding Forward-Looking Statements This communication contains forward-looking statements that are subject to risks and uncertainties, including with respect to any future debt and leverage levels. All statements other than statements of historical or current f ...

For the quarter ended December 2024, Phibro Animal Health (PAHC) reported revenue of $309.3 million, up 23.8% over the same period last year. EPS came in at $0.54, compared to $0.33 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $298.7 million, representing a surprise of +3.55%. The company delivered an EPS surprise of +28.57%, with the consensus EPS estimate being $0.42.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings ...

Phibro Animal Health (PAHC) came out with quarterly earnings of $0.54 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.33 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 28.57%. A quarter ago, it was expected that this maker of animal health products and nutritional supplements would post earnings of $0.23 per share when it actually produced earnings of $0.35, delivering a sur ...

Highlights for the three months ended December 31, 2024 (compared to the three months ended December 31, 2023) We have updated our fiscal year 2025 guidance, which includes: COMMENTARY "Phibro has achieved exceptional results this quarter, fueled by robust demand in our Animal Health segment and the successful integration of the Zoetis Medicated Feed Additive (MFA) portfolio," stated Jack Bendheim, President and Chief Executive Officer. "Our impressive 24% revenue growth and notable enhancement in profitabi ...

Acquisition and Expansion - The company completed the acquisition of Zoetis's medicated feed additive portfolio for approximately $301.8 million, which generated $407.6 million in revenue in 2023[106]. - The acquisition includes six manufacturing sites across the U.S., Italy, and China, enhancing the company's global operational footprint[106]. - The company incurred $12.2 million in acquisition-related costs within SG&A for the six months ended December 31, 2024[145]. - Total acquisition-related items, net of income taxes, amounted to $9.2 million for Q4 2024, compared to $2.1 million in Q4 2023, indicating a significant increase[157]. - The company is actively pursuing strategic initiatives, including the integration of acquired businesses and expansion of its product portfolio[183]. Financial Performance - Net sales for the three months ended December 31, 2024, were $309.3 million, an increase of $59.3 million or 24% compared to the same period in 2023[124]. - Gross profit for the same period was $101.9 million, up $23.3 million or 30%, with a gross margin of 32.9%, an increase of 140 basis points from 31.5% in the prior year[129]. - Operating income increased to $25.5 million, a 63% rise from $15.7 million in the same quarter of 2023[1]. - Net income for the three months was $3.2 million, compared to $1.3 million in the prior year, marking a significant improvement[1]. - Adjusted EBITDA for the three months was $48.2 million, a 64% increase from $29.5 million in the same period last year[120]. - Net sales for the six months ended December 31, 2024, were $569.7 million, an increase of $88.4 million or 18% compared to the same period in 2023[138]. - Animal Health segment net sales increased by $78.3 million or 23% for the six months ended December 31, 2024, driven by incremental revenues from the Zoetis MFA portfolio acquired on October 31, 2024[139]. - Gross profit for the six months ended December 31, 2024, was $185.4 million, an increase of $39.0 million or 27% compared to the same period in 2023, with a gross margin increase of 210 basis points to 32.5%[143]. - Net income for the six months ended December 31, 2024, was $10.2 million, compared to a net loss of $6.7 million for the same period in 2023, reflecting an operating income increase of $28.3 million[151]. - Adjusted net income for Q4 2024 was $21.9 million, an increase of $8.5 million or 63% compared to Q4 2023[154]. - GAAP diluted EPS for Q4 2024 was $0.08, up from $0.03 in Q4 2023, while adjusted diluted EPS increased to $0.54 from $0.33, representing a 64% growth[155]. Costs and Expenses - Interest expense increased by 93% to $9.0 million, reflecting higher borrowing costs[1]. - SG&A expenses for Q4 2024 were $76.3 million, an increase of $13.4 million or 21% compared to Q4 2023, including $8.8 million for acquisition-related costs[132]. - Interest expense for the six months ended December 31, 2024, was $16.6 million, an increase of $7.4 million or 80% compared to the same period in 2023, due to higher debt levels from the acquisition financing[147]. Currency and Taxation - The effective tax rate decreased to 34.2% from 64.3% in the prior year, positively impacting net income[1]. - The effective income tax rate for the six months ended December 31, 2024, was 29.7%, compared to a tax benefit rate of 19.9% for the same period in 2023[149]. - The company reported a significant increase in foreign currency losses, which rose by 56% to $11.7 million[1]. - Foreign currency losses for the six months ended December 31, 2024, were $12.1 million, a decrease from $14.2 million in the same period in 2023[148]. - Adjusted net income for the six months ended December 31, 2024, was significantly impacted by acquisition-related costs and foreign currency losses, totaling $18.7 million in adjustments[157]. Market and Operational Risks - The company is exposed to market risks from adverse changes in interest rates, foreign currency exchange rates, and commodity prices, which may affect future earnings and cash flows[186]. - The company anticipates potential risks including competition, regulatory changes, and market conditions that could materially affect its operations and financial results[181]. - The company acknowledges the potential impact of climate change and pandemics on its operations and market demand[181]. - Macroeconomic developments and potential tariffs could adversely impact the company's ability to sell products and services in various markets[117]. Liquidity and Cash Flow - Cash provided by operating activities was $15.7 million for the six months ended December 31, 2024, a decrease of $32.1 million compared to the same period in 2023[158]. - Investing activities resulted in a cash outflow of $263.4 million for the six months ended December 31, 2024, primarily due to the acquisition cost of $290.8 million[160]. - Financing activities generated $247.1 million in net cash, reflecting the refinancing of the debt portfolio and financing of the acquisition[161]. - As of December 31, 2024, cash and cash equivalents and short-term investments totaled $67.1 million, down from $114.6 million as of June 30, 2024[163]. - The company's working capital increased to $462.1 million as of December 31, 2024, compared to $312.0 million as of June 30, 2024, with a current assets to current liabilities ratio of 3.13:1[163]. - The company expects adequate liquidity for at least the next twelve months, considering current macroeconomic conditions[162]. Manufacturing and Operations - The company's Israeli manufacturing facilities account for 17% of consolidated assets and 20% of consolidated net sales for the six months ended December 31, 2024[110]. - The company has three manufacturing sites in Israel, producing various animal health products, with approximately 480 employees located there[109]. - The company’s sales to Russia and Ukraine represented approximately 1% of consolidated net sales for the twelve months ended December 31, 2024[112]. - The company is actively defending the safety of carbadox amid regulatory challenges, which could adversely affect financial results if unsuccessful[116]. - Sales of Mecadox (carbadox) for the twelve months ended December 31, 2024, were approximately $23 million[116].

Phibro Animal Health (PAHC) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power ...