Nutrition ingredients maker Balchem's Q3 sales edge past estimates

By Reuters News


Overview

  • Nutrition ingredients supplier's fiscal Q3 sales rose 8.6%, slightly beating analyst expectations

  • Company repurchased $28 mln of common stock during the quarter

  • Growth driven by higher sales and favorable mix across all segments


Outlook

  • Company did not provide specific financial guidance for the current quarter or full year in its press release


Result Drivers

  • HUMAN NUTRITION AND HEALTH - Higher sales in both nutrients and food ingredients businesses drove record segment revenue and operating earnings, partially offset by higher operating expenses

  • ANIMAL NUTRITION AND HEALTH - Segment sales rose on higher demand in monogastric and ruminant species markets, boosting operating earnings despite higher manufacturing input costs

  • SPECIALTY PRODUCTS - Higher sales in performance gases business led to segment growth, though partially offset by increased operating expenses


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Slight Beat*

$290.7 mln

$289.25 mln (3 Analysts)

Q3 Adjusted EPS

$1.57

$1.54 (2 Analysts)

Q3 EPS

$1.46

Q3 Net Income

$46.7 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 Corporation is $215.00, about 24.1% above its October 22 closing price of $173.23

  • The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 29 three months ago


Reuters Recommended Reads

  • Oct 20 - Copper tube maker Mueller Industries' Q3 revenue rises on higher volumes

  • Oct 20 - Valmont Q3 profit beats estimates on utility demand

  • Oct 21 - Rollins Q3 revenue slightly misses estimates as customer acquisition pressures persist


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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