Phibro Animal Health Corp (NASDAQ:PAHC)’s Picture Looks Perfect

Soon after touching a 52-week high few day ago, the shares of Phibro Animal Health Corp (NASDAQ:PAHC) have headed downward. There has been no information pertaining to such change of direction. However, the bullish outlook prevails over the animal health and mineral nutrition company. The last update on the company came when it announced its second quarter results for the period ended on December 31, 2014.

Analyst predict major swings in the market… will it affect PAHC?

Animal Health And Mineral Nutrition

Phibro Animal Health Corp (NASDAQ:PAHC) surpassed the revenue target by $7.18 million by posting it at $188.7 million, representing an increase of 9.3% year-over-year. However, the company marginally missed the earnings per share estimate of $0.36 as it reported the same at $0.35. The company credited the revenue growth to improvement in its Animal Health and Mineral Nutrition segments, which grew by $10.8 million and $8.1 million respectively.

The performance of these divisions largely offsets the decline of $3 million in the company’s Performance products. Animal Health reported the most of the growth due to volume growth in international markets. Both Medicated Feed Additives and Nutritional Specialty registered a growth of 9% and 27% respectively.

Growth propellers

Meanwhile, the demand for certain traces mineral products improved in the market leading to two-thirds of the sales growth in mineral nutrition. At the same time, the remaining sales growth was driven by an increase in average selling prices to match with the price increase in the underlying raw materials. The company’s Selling, general and administrative (SG&A) expenses grew by 6% or $2.2 million on account of higher sales, marketing and development spend.

 The company reported $21 million cash on hand as on December 31, 2014 while it had $5 million net cash flow available. Alongside this, Phibro Animal Health Corp (NASDAQ:PAHC) also announced dividend at the rate of $0.10 per share, which will be paid out to the shareholders on March 25, 2015.

Phibro Animal Health Corp (NASDAQ:PAHC) is currently trading at $34.96 after losing 0.96%

About the Author

Stinson is US Markets Daily’s Senior Producer for News & Public Affairs.

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