Interpreting Phibro (PAHC) International Revenue Trends

Have you looked into how Phibro Animal Health (PAHC) performed internationally during the quarter ending March 2024? Considering the widespread global presence of this maker of animal health products and nutritional supplements, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

While delving into PAHC's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.

The company's total revenue for the quarter amounted to $263.2 million, showing rise of 7.1%. We will now explore the breakdown of PAHC's overseas revenue to assess the impact of its international operations.

Unveiling Trends in PAHC's International Revenues

Asia Pacific generated $17.08 million in revenues for the company in the last quarter, constituting 6.5% of the total. This represented a surprise of -1.66% compared to the $17.37 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $14.76 million (5.9%), and in the year-ago quarter, it contributed $15.09 million (6.1%) to the total revenue.

During the quarter, Latin America and Canada contributed $53.65 million in revenue, making up 20.4% of the total revenue. When compared to the consensus estimate of $52.85 million, this meant a surprise of +1.52%. Looking back, Latin America and Canada contributed $65.18 million, or 26.1%, in the previous quarter, and $53.88 million, or 21.9%, in the same quarter of the previous year.

Europe, Middle East and Africa accounted for 12.6% of the company's total revenue during the quarter, translating to $33.18 million. Revenues from this region represented a surprise of +8.52%, with Wall Street analysts collectively expecting $30.57 million. When compared to the preceding quarter and the same quarter in the previous year, Europe, Middle East and Africa contributed $29.52 million (11.8%) and $28.17 million (11.5%) to the total revenue, respectively.

International Revenue Predictions

Wall Street analysts expect Phibro to report a total revenue of $261.1 million in the current fiscal quarter, which suggests an increase of 2.4% from the prior-year quarter. Revenue shares from Asia Pacific, Latin America and Canada and Europe, Middle East and Africa are predicted to be 7.3%, 23.3% and 13%, corresponding to amounts of $18.92 million, $60.9 million and $33.98 million, respectively.

Analysts expect the company to report a total annual revenue of $994.21 million for the full year, marking an increase of 1.7% compared to last year. The expected revenue contributions from Asia Pacific, Latin America and Canada and Europe, Middle East and Africa are projected to be 6.6% ($65.54 million), 23.9% ($237.64 million) and 12.2% ($120.95 million) of the total revenue, in that order.

Final Thoughts

Relying on international markets for revenues, Phibro faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

At the moment, Phibro has a Zacks Rank #2 (Buy), signifying that it may outperform the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Review of Phibro's Recent Stock Market Performance

Over the preceding four weeks, the stock's value has appreciated by 33.9%, against an upturn of 1.3% in the Zacks S&P 500 composite. In parallel, the Zacks Medical sector, which counts Phibro among its entities, has appreciated by 1.7%. Over the past three months, the company's shares have seen an increase of 45.4% versus the S&P 500's 4.3% increase. The sector overall has witnessed a decline of 1% over the same period.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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