Phibro Animal Health Stock Climbs 59.6% YTD: What's Driving It?

Core Insights - Phibro Animal Health (PAHC) shares have increased by 59.6% this year, significantly outperforming the industry and the S&P 500 [1][2] Company Performance - The company holds a Zacks Rank 1 (Strong Buy) and is benefiting from the strong performance of its Animal Health portfolio, particularly in vaccines and emerging markets [2][4] - Phibro markets around 800 product lines across approximately 90 countries, focusing on food and companion animals, and is expanding its product offerings in the companion animal sector [3][4] Revenue Growth - The surge in share price is attributed to strong traction in the Animal Health business, with medicated feed additives (MFA) revenues growing by 81% in Q1 of fiscal 2026, bolstered by the integration of Zoetis' MFA business [4][9] - Vaccine sales increased by 25% year over year in Q1 of fiscal 2026, with management identifying vaccines as a key growth driver [5][9] Global Expansion - Phibro's sales in Europe, the Middle East, and Africa rose by 44.4%, while Asia Pacific sales surged by 101.1% in Q1 of fiscal 2026, reflecting the company's successful global expansion strategy [6][9] Financial Estimates - The Zacks Consensus Estimate predicts a 32.1% increase in earnings per share (EPS) for fiscal 2026, reaching $2.76, and a 6.2% increase for fiscal 2027, reaching $2.93 [11] - Revenues for fiscal 2026 are projected to grow by 13.1% to $1.47 billion, with fiscal 2027 revenues expected to reach $1.51 billion, indicating a 2.8% increase [11]