Why Shares of Phibro Animal Health Crashed Today
Shares of Phibro Animal Health (NASDAQ: PAHC) fell 31% on Wednesday after the animal health and nutrition company generated weaker-than-expected quarterly results and warned that its new fiscal year would also be challenged. Phibro is being weighed down by an outbreak of African swine fever in China, which is necessitating an uptick in research and development spending and affecting demand for its products.
After markets closed Tuesday, Phibro reported fiscal fourth-quarter earnings of $0.33 per share on revenue of $204 million, falling just short of analyst expectations for $0.36 per share in earnings on $206 million in sales. The real issue was guidance, with Phibro saying it expects adjusted earnings of $1.08 to $1.15 per share in its fiscal 2020, well short of the $1.54 consensus estimate.
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Source Fool.com
