Prestige Consumer Healthcare (NYSE:PBH) Issues Earnings Results, Beats Expectations By $0.09 EPS

Prestige Consumer Healthcare (NYSE:PBH) released its quarterly earnings data on Thursday. The company reported $0.98 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.89 by $0.09, FiscalAI reports. The company had revenue of $265.71 million during the quarter, compared to analysts’ expectations of $250.34 million. Prestige Consumer Healthcare had a net margin of 15.57% and a return on equity of 11.39%. The firm’s quarterly revenue was up 6.5% on a year-over-year basis. During the same period in the previous year, the company earned $0.90 EPS. Prestige Consumer Healthcare updated its FY 2027 guidance to 4.550-4.650 EPS.

Here are the key takeaways from Prestige Consumer Healthcare’s conference call:

• Q1 revenue rose 6.5% to $265.7 million, with organic growth of 3.2% driven by GI brands such as Dramamine and Fleet, skincare led by Compound W, and strength in TheraTears and Debrox. Adjusted EPS increased to $0.98, while adjusted free cash flow reached a quarterly record of $83.7 million.
• Management raised fiscal 2027 guidance to $1.290 billion-$1.315 billion in revenue and $4.55-$4.65 in adjusted EPS, primarily reflecting the acquisitions of Breathe Right and LaCorium. Adjusted free cash flow is now expected to be at least $270 million, with year-end leverage projected below 4 times.
• The Breathe Right portfolio, expected to generate approximately $200 million in annual revenue, is largely integrated and offers potential growth through marketing, innovation, sports applications, and international expansion. LaCorium adds approximately $40 million of annualized revenue and strengthens Prestige’s therapeutic skincare presence in Australia.
• Clear Eyes sales remain materially constrained by supply issues at the Pillar5 manufacturing facility; the brand currently represents less than 3% of company sales versus a much higher historical level. Management expects output to improve in the second half, but rebuilding inventory, shelf space, product assortment, and consumer engagement is expected to take multiple years.
• Management expects a modest organic revenue decline in the second quarter because retailer order timing benefited Q1, while gross margin declined 120 basis points year over year in Q1 due mainly to transportation costs and product mix. Higher interest and amortization expenses related to the acquisitions are also expected to weigh on near-term earnings.

Prestige Consumer Healthcare Stock Up 0.9%

Shares of Prestige Consumer Healthcare stock traded up $0.49 during trading on Friday, reaching $54.92. The company’s stock had a trading volume of 597,746 shares, compared to its average volume of 529,217. Prestige Consumer Healthcare has a 1-year low of $42.62 and a 1-year high of $71.07. The company has a 50-day simple moving average of $48.82 and a two-hundred day simple moving average of $56.06. The company has a quick ratio of 2.25, a current ratio of 3.23 and a debt-to-equity ratio of 1.06. The company has a market cap of $2.60 billion, a price-to-earnings ratio of 15.38, a P/E/G ratio of 1.69 and a beta of 0.34.

Institutional Investors Weigh In On Prestige Consumer Healthcare

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Cibc World Markets Corp acquired a new position in Prestige Consumer Healthcare during the 4th quarter valued at approximately $202,000. Advisory Services Network LLC purchased a new position in shares of Prestige Consumer Healthcare in the third quarter worth $181,000. Sherbrooke Park Advisers LLC acquired a new stake in shares of Prestige Consumer Healthcare during the third quarter worth $206,000. Orion Porfolio Solutions LLC acquired a new stake in shares of Prestige Consumer Healthcare during the second quarter worth $204,000. Finally, EverSource Wealth Advisors LLC grew its holdings in shares of Prestige Consumer Healthcare by 151.6% during the second quarter. EverSource Wealth Advisors LLC now owns 1,454 shares of the company’s stock valued at $116,000 after buying an additional 876 shares during the last quarter. 99.95% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Prestige Consumer Healthcare

Here are the key news stories impacting Prestige Consumer Healthcare this week:

• Positive Sentiment: Adjusted EPS was $0.98, exceeding the $0.89 analyst consensus and rising from $0.95 a year earlier. Revenue increased 6.5% year over year to $265.7 million, above the $250.3 million consensus estimate. Prestige Consumer Healthcare Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Organic sales grew 3.2%, led by the gastrointestinal and dermatological categories, suggesting underlying demand remained resilient despite a challenging consumer environment.
• Positive Sentiment: Prestige raised fiscal 2027 guidance to revenue of $1.290 billion-$1.315 billion, adjusted EPS of $4.55-$4.65, and adjusted free cash flow of at least $270 million. The revenue outlook includes the recently acquired Breathe Right portfolio and LaCorium Health. Prestige Consumer Healthcare Fiscal 2027 First Quarter Results
• Positive Sentiment: Adjusted free cash flow rose to $83.7 million, and management said the cash generation should support deleveraging. The company also extended $400 million of debt maturities to 2034, moving its closest maturity to 2031.
• Neutral Sentiment: An analyst roundup cited a $70.75 price target, indicating potential upside relative to recent trading levels, though price targets reflect individual estimates rather than company guidance. Analysts Set Prestige Consumer Healthcare Price Target
• Negative Sentiment: GAAP diluted EPS fell to $0.61 from $0.95, while net income declined to $29.2 million from $47.5 million. Gross margin also contracted to 51.3% from 56.2%, and acquisition-related expenses and higher interest costs weighed on reported profitability.
• Negative Sentiment: Prestige ended the quarter with approximately $2 billion of net debt, increasing financial leverage and execution risk as it integrates the new acquisitions.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Oppenheimer lowered Prestige Consumer Healthcare from an “outperform” rating to a “market perform” rating in a research report on Thursday, May 14th. Weiss Ratings lowered shares of Prestige Consumer Healthcare from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Thursday, June 25th. Zacks Research downgraded shares of Prestige Consumer Healthcare from a “hold” rating to a “strong sell” rating in a research note on Monday, May 18th. Finally, Canaccord Genuity Group lowered their target price on Prestige Consumer Healthcare from $86.00 to $72.00 and set a “buy” rating for the company in a report on Friday, May 15th. Two analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $70.75.

Prestige Consumer Healthcare Company Profile

Prestige Consumer Healthcare, Inc is a leading manufacturer and marketer of branded over-the-counter (OTC) healthcare products. The company focuses on developing, acquiring and commercializing a diverse portfolio of non-prescription remedies designed to address common consumer health needs, including pain relief, cold and cough, digestive health, eye care, skin care and women’s health.

Key brands in Prestige’s portfolio include Clear Eyes (eye health), Carmex (lip care), Chloraseptic (sore throat relief), Dramamine (motion sickness), Rolaids (antacid), Monistat (women’s health), BC Powder (pain relief), Little Remedies (pediatric cold and gas relief) and TheraTears (dry eye therapy).