Phibro(PAHC) ZACKS·2025-05-08 13:15Core Viewpoint - Phibro Animal Health (PAHC) reported strong adjusted earnings per share (EPS) for Q3 fiscal 2025, significantly exceeding the previous year's performance, although revenue slightly missed expectations [1][2][10]. Financial Performance - Adjusted EPS for Q3 was 63 cents, up from 31 cents year-over-year, beating the Zacks Consensus Estimate by 21.1% [1] - GAAP EPS was 51 cents compared to 21 cents in the prior-year period [1] - Net sales reached 258.4 million, although it was below the projected 77 million from the Zoetis MFA portfolio acquisition [4] - Mineral Nutrition segment sales rose 4% to 22.7 million, surpassing projections [5] Margin Analysis - Gross profit for Q3 increased by 31.3% to 33.4 million, with an operating margin expansion of 204 basis points to 9.6% [6] Cash Position - At the end of Q3, the company had cash and short-term investments of 67.1 million at the end of Q2 [7] - Cumulative net cash from operating activities was 59.2 million year-over-year [7] Guidance Update - For fiscal 2025, PAHC expects net sales between 1.29 billion, indicating a 25% growth, with adjusted EPS projected between 2.09 [9] - The revised guidance reflects a 70% improvement compared to earlier projections [9] Overall Assessment - The company achieved an earnings beat but a revenue miss in Q3, with strong growth driven by the Animal Health segment and successful integration of the Zoetis MFA business [10] - The outlook for fiscal 2025 remains positive despite some margin contraction and challenges in product sales timing [10][11]