Phibro Animal Health Corporation PAHC reported adjusted earnings per share (EPS) of 46 cents in the fourth quarter of fiscal 2018, up 17.9% year over year. Adjusted EPS surpassed the Zacks Consensus Estimate of 44 cents.

According to the company, the year-over-year improvement was primarily driven by higher gross profit, reduced interest expenses as well as a drop in effective income tax rate.

Reported EPS of 55 cents was up 44.7% from a year ago.

Full-year adjusted EPS came in at $1.74, up from the year-ago $1.51. Also, the figure beat the Zacks Consensus Estimate of $1.71.

Net Sales

In the reported quarter, net sales totaled $211.8 million, up 8.7% year over year. The improvement was driven by sales growth at the Animal Health, Mineral Nutrition and Performance Products segments.

Fiscal 2018 revenues of $820 million were up 7.3% from the year-ago figure. The figure also surpassed the Zacks Consensus Estimate of $817.2 million.

Sales by Segments

Net sales at the Animal Health segment increased 7% to $137.7 million in the reported quarter on volume increase at Nutritional specialty and Vaccine product groups within the segment. Nutritional specialty products grew less than 1%, principally on volume growth of products for poultry which was largely offset by decreased sales to the dairy sector which is grappling with weak conditions. Further, sales from Vaccines increased 7%, mosty on global volume growth.

Moreover, sales at Medicated Feed Additives (MFAs) and other grew 9% primarily on strength in international business. International net sales were driven by growth in most regions, including benefits from a recent buyout and additional penetration in the cattle sector. Domestic net sales at MFAs and Other remained flat year over year.

Net sales at the Mineral Nutrition segment rose 14% to $60.3 million on higher average selling prices resulting from an increase in underlying raw material commodity price.

Phibro Animal Health Corporation Price, Consensus and EPS Surprise