Our Value Authority stocks are starting to release strong results for the most-recent quarter, as we had two Buy List companies top analysts’ estimates. Let’s review the recent results and discuss what’s next for both companies.

Phibro Animal Health Corporation (PAHC) reported a strong fiscal second quarter last night. Revenues gained 13%, which was much better than the 5% growth expected. Price increases and continued strong demand for the company’s products drove the quarterly gains. Second-quarter EPS of $0.37, vs. $0.34 last year, was also $0.04 better than expectations. The company is now expecting EPS for the fiscal year ending June 30 between $1.30 and $1.39, versus expectations for $1.28.

The stock is up 8% today on the news, as it appears the company is handling higher costs nicely, and the emerging market story that made PAHC a popular growth stock a few years ago seems to be coming back. Trading at just 15X the current fiscal year’s EPS estimate, I think the stock can go higher. Buy PAHC below $20.50. My target is $25.

Sonoco Products Company (SON) is trading down about 1% today after reporting fourth-quarter EPS of $0.90 vs. $0.82 in the prior year period. Results were at the high end of the company’s previously guided range of $0.84 to $0.90.  Revenues gained 4.7%, which was more than double the expected increase of 2.3%.

The company guided 2022 EPS of $4.60 to $4.80 a share. For the first time, the company is not including the amortization of intangible assets in reporting core earnings, following the practice of most publicly traded companies. On a like basis, the company earned $3.93 a share in 2021.

With the chance for the economy to slow as the Fed raises rates, investors may give this guidance some scrutiny and not necessarily immediately price in the 2022 guidance. However, SON is a solid operator that produces relatively consistent earnings, and I am confident the stock can outperform in most economic environments this year. SON is a buy below $63. If the market can grow more confident in the company’s forecast for this year, my $70 target is very achievable. The 3.2% dividend yield adds to the attraction of the shares.