On Sep 13, we issued an updated research report on NJ-based Phibro Animal Health Corporation (NASDAQ:PAHC) – a leading global diversified animal health and mineral nutrition company. The company currently carries a Zacks Rank #5 (Strong Sell).
Over the last 30 days, the Zacks Consensus Estimate for full-year 2016 earnings fell by 27 cents to $1.41 per share, as most analysts revised their estimates downward.
Notably, after ending the fourth quarter of fiscal 2016 on an unsatisfactory note with deteriorating year-over-year earnings, the biggest concern for the company has been the initial actions taken by the FDA to withdraw approval for its flagship product Mecadox.
Notably, Mecadox is a carbadox product sold by Phibro for more than 40 years. Per management, the FDA withdrawal is expected to impact the company’s operations over the long haul.
Other major dampeners for Phibro are an unsatisfactory performance by its mineral nutrition segment in the last reported quarter, currency fluctuations, consolidation of the company’s customers which is increasing pricing pressure and a tough competitive market scenario.
On a positive note, the encouraging global trends in the animal health market buoy optimism for the company. Notably, Phibro is a leading provider of Medicated Feed Additives (MFA) and data by Vetnosis suggests that the MFA product market is projected to grow at a CAGR of approximately 4% (from 2015–2020).
Key Picks
Better-ranked stocks in the broader medical sector include INC Research Holdings Inc. (NASDAQ:INCR) , Lantheus Holdings Inc (NASDAQ:LNTH) and NuVasive Inc. (NASDAQ:NUVA) . Notably, all the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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PHIBRO ANIMAL (PAHC): Free Stock Analysis Report
NUVASIVE INC (NUVA): Free Stock Analysis Report
INC RESRCH HLDG (INCR): Free Stock Analysis Report
LANTHEUS HLDGS (LNTH): Free Stock Analysis Report
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