Phibro Animal Health Soars 17.98% on Q4 Earnings Surge

Phibro Animal Health's stock surged 17.98% in pre-market trading on August 28, 2025, driven by a strong fourth-quarter performance.

Phibro Animal Health reported a significant increase in revenue for the fourth quarter, reaching $378.7 million, a 39% year-over-year increase. This growth was primarily driven by the acquisition of Zoetis's medicated feed additive (MFA) portfolio and strong demand from Latin America. The company's adjusted earnings per share (EPS) also rose to $0.57, surpassing analyst expectations.

The acquisition of Zoetis's MFA lineup contributed to a 77% increase in MFA and related product sales. However, the company's core profitability, as measured by EBITDA, fell slightly below expectations due to higher costs associated with strategic initiatives and staffing. Despite this, Phibro remains optimistic about its future growth prospects, projecting revenue of up to $1.48 billion and earnings per share of $2.03 by fiscal 2026.

While the company's impressive revenue growth has garnered attention, analyst sentiment remains mixed. Most analysts maintain a 'hold' rating, with a median 12-month price target of $24, which is below the recent share price. This suggests some skepticism about the sustainability of Phibro's rapid growth pace. The company's international expansion, particularly in Latin America, shows promise but also comes with higher risks and spending.