Shares of Phibro Animal Health Corporation (PAHC) surged 6.84% on Wednesday, November 7, 2024, as the company reported strong fiscal first-quarter 2025 earnings that exceeded analyst expectations and raised its full-year earnings guidance.
For the quarter ended September 30, 2024, Phibro Animal Health posted adjusted earnings per share (EPS) of $0.35, beating the Zacks Consensus Estimate by an impressive 52.2%. The company's EPS performance was driven by a 12.6% year-over-year increase in net sales to $260.4 million, though this figure narrowly missed analysts' expectations by 6.3%.
Notably, Phibro Animal Health's gross profit rose 23.3% year-over-year, and its gross margin expanded by 280 basis points to 32.1%, reflecting improved profitability and operational efficiency. The company's Animal Health segment, which includes medicated feed additives, nutritional specialty products, and vaccines, saw a 13.7% increase in net sales.
Following the robust first-quarter results, Phibro Animal Health raised its fiscal 2025 adjusted EPS guidance range to $1.34-$1.48, up from the previous range of $1.22-$1.37. This upward revision, implying an 18% year-over-year earnings growth compared to the earlier projected 9%, fueled investor optimism and sparked the stock's rally on Wednesday.
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