Nutrition ingredients maker Balchem's Q3 sales edge past estimates

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

*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

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(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.)