Phibro Animal Health (PAHC) Misses Q1 EPS by 2c, Revenues Miss; FY18 EPS Outlook Below Consensus

Phibro Animal Health (NASDAQ: PAHC) reported Q1 EPS of $0.39, $0.02 worse than the analyst estimate of $0.41. Revenue for the quarter came in at $200 million versus the consensus estimate of $204.12 million.

• Net sales of $200 million, an increase of $7 million, or 3%
• Net income of $16 million, an increase of 3%
• Diluted EPS of $0.40, an increase of $0.01, or 3%
• Adjusted EBITDA of $30 million, even with the prior year
• Adjusted diluted EPS of $0.39, an increase of $0.01, or 3%

“Our Animal Health business reported another positive quarter, despite turbulence in currencies, economic conditions in certain countries and continued weakness in dairy industry fundamentals,” said Jack Bendheim, Phibro's Chairman, President and Chief Executive Officer. “Animal Health adjusted EBITDA increased 6%, as we leveraged 2% sales growth with improved gross profit and good expense control. International volume growth of MFAs and other, notably in the cattle sector in various countries, was the primary driver of Animal Health’s sales growth. The Mineral Nutrition business faced some short-term challenges as profit declined due to unfavorable product mix and pricing pressures. We expect the minerals business to recover later this fiscal year.”

“We are investing P&L expense dollars to develop future growth opportunities. The spending is focused on expanding our portfolio of nutritional specialty and vaccine products and developing an entry into the companion animal segment. We also acquired additional vaccine technology during the quarter, including in aquaculture,” Mr. Bendheim said.

GUIDANCE:

Phibro Animal Health sees FY2019 EPS of $1.68-$1.72, versus the consensus of $1.75.

For earnings history and earnings-related data on Phibro Animal Health (PAHC) click here.

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