Nutrition ingredients supplier Balchem's Q1 sales rise 8%, beat estimates

Overview

• US nutrition ingredients supplier's fiscal Q1 sales rose 8%, beating analyst expectations

• Adjusted EPS for fiscal Q1 rose to $1.33 from $1.22 yr/yr

• Company saw growth in all three business segments, with record Q1 sales and earnings

Outlook

• Company did not provide specific financial guidance for the current quarter or full year

Result Drivers

• SEGMENT SALES GROWTH - Higher sales in Human Nutrition and Health, Animal Nutrition and Health, and Specialty Products segments drove overall revenue growth

• MANUFACTURING EFFICIENCIES - Gross margin improvement was primarily due to sales growth and manufacturing efficiencies, partially offset by raw material inflation

• HIGHER OPERATING EXPENSES - Operating expenses rose mainly due to higher compensation-related costs and increased professional services

Company press release: ID:nGNX6VgTXq

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty chemicals peer group is "buy"

• Wall Street's median 12-month price target for Balchem Corp is $202.50, about 16.8% above its April 29 closing price of $173.33

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 28 three months ago

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