Results: Phibro Animal Health Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates

Phibro Animal Health Corporation (NASDAQ:PAHC) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of US$364m, some 5.3% above estimates, and statutory earnings per share (EPS) coming in at US$0.65, 71% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, Phibro Animal Health's four analysts are now forecasting revenues of US$1.46b in 2026. This would be a modest 4.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 18% to US$1.98. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.46b and earnings per share (EPS) of US$2.04 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

See our latest analysis for Phibro Animal Health

Despite cutting their earnings forecasts,the analysts have lifted their price target 15% to US$41.00, suggesting that these impacts are not expected to weigh on the stock's value in the long term. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Phibro Animal Health at US$50.00 per share, while the most bearish prices it at US$32.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Phibro Animal Health shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Phibro Animal Health's revenue growth is expected to slow, with the forecast 6.0% annualised growth rate until the end of 2026 being well below the historical 9.4% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Phibro Animal Health.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Phibro Animal Health going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Phibro Animal Health that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.