Phibro Animal Reports Mixed Q3 Earnings, Lifts FY22 Sales Outlook

• Phibro Animal Health Corp (NASDAQ:PAHC) posted Q3 FY22 sales of $239.6 million, +13% Y/Y, beating the consensus of $226.26 million.
• Adjusted EPS decreased 3% to $0.33, missing the consensus of $0.35.
• The gross margin decreased 280 basis points to 29.9%. Adjusted EBITDA of $28.0 million, comparable to the prior year.
• "Our fiscal year-to-date net sales reflect year-over-year growth of 12%, driven by double-digit sales growth across all segments - a 10% improvement in our core Animal Health segment and net sales growth of 16% and 12% in our Mineral Nutrition and Performance Products segments, respectively," said Jack Bendheim, Phibro's Chairman, President, and CEO. 
• Guidance: Phibro raised its FY22 sales to $930 million – $950 million (consensus $907.54 million) from $890 million – $920 million.
• The company says that revised guidance assumes that supply chain and labor challenges will persist for the remainder of our fiscal year.
• It reaffirms adjusted EPS guidance of $1.30 - $1.39, compared to the consensus of $1.36.
• The company expects adjusted EBITDA of approximately $110.0 – $114.0 million.
• Price Action: PAHC shares closed at $19.87 on Wednesday.