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On Monday, H.C. Wainwright adjusted its price target on Balchem Corporation (NASDAQ:BCPC) shares, reducing it from $190.00 to $180.00. Despite this change, the firm maintains a Buy rating on the stock. The company, currently valued at $5 billion with shares trading at $153.64, is showing signs of being overvalued according to InvestingPro analysis. In a recent report, H.C. Wainwright analyst Raghuram Selvaraju provided insights into Balchem’s first-quarter financial performance of 2025, which showed a 4.5% increase in top-line revenue from the same period last year.
Balchem reported $250.5 million in revenue, surpassing the analyst’s prediction of $242 million and slightly increasing from the $240 million recorded in the fourth quarter of 2024. The company’s GAAP net earnings were notable, reaching $1.13 per diluted share, which was well above the forecasted $0.99 per diluted share. With a strong gross profit margin of 35.55% and trailing twelve-month EBITDA of $238.45 million, InvestingPro data shows the company maintains robust profitability metrics. Based on these results, H.C. Wainwright has revised its full-year revenue forecast for 2025 to $1.032 billion, up from the previously anticipated $1.016 billion, and for 2026 to $1.15 billion from the earlier estimate of $1.14 billion.
The Human Nutrition and Health (HNH) segment was highlighted as a key driver of growth, with revenue hitting $158.5 million in the first quarter, significantly exceeding the forecast of $146 million. The firm anticipates that this segment will continue to experience robust growth throughout the year. This aligns with the company’s overall revenue growth trend, which InvestingPro data shows has maintained a solid 8% CAGR over the past five years. Conversely, the animal health and nutrition segment fell slightly short of expectations, with sales of $57.3 million compared to the estimated $59 million. Similarly, specialty products and industrial products segments did not meet the forecasted figures, with revenues of $33.3 million and $1.51 million, respectively, against projections of $35 million and $2 million.
The effective tax rate for Balchem in the first quarter stood at 21.3%, and H.C. Wainwright expects this rate to increase in the upcoming quarters, projecting a rate of 22.4% for 2025 and 23% for 2026. The revised earnings per diluted share forecast for the full year of 2025 now stands at $4.53, up from the previous estimate of $4.22, and for 2026, the earnings are projected to be $4.97 per diluted share, an improvement from the prior estimate of $4.71. Notably, the company has maintained dividend payments for 39 consecutive years, with a current dividend yield of 0.57%. The firm reiterated its Buy rating while adjusting the price target to reflect the latest financial data and projections, with analyst targets ranging from $190 to $216 per share.
In other recent news, Balchem Corporation reported its Q1 2025 earnings, surpassing analysts’ expectations with an earnings per share of $1.22, compared to the forecasted $1.06. Revenue also exceeded projections, reaching $250.52 million against an expected $244.87 million, marking a 4.5% year-over-year increase. Despite these strong financial results, Balchem’s stock experienced a decline, which may be attributed to broader market trends and concerns raised during the earnings call. Analysts from CJS Securities participated in the earnings call, expressing interest in Balchem’s strategies to mitigate potential tariff impacts and capitalize on growth opportunities in the choline and vitamin K2 markets.
The company highlighted its ongoing expansion in the Animal Nutrition segment with new product launches such as AminoShore XL. Balchem’s CEO, Ted Harris, emphasized the company’s strong market position and expressed confidence in its supply chain flexibility and resilience. The company is also evaluating mergers and acquisitions opportunities and expects a potential currency translation tailwind of $10-15 million. Balchem maintains a positive outlook for future quarters, with revenue projections reaching $270.5 million by Q1 2026. The company’s robust performance in various segments indicates a continued focus on organic growth and strategic investments.
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