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

Prestige Consumer Healthcare (NYSE:PBH) posted its earnings results on Thursday. The company reported $0.98 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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%. Prestige Consumer Healthcare’s quarterly revenue was up 6.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.90 earnings per share. 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 Trading Up 0.9%

NYSE:PBH traded up $0.49 on Friday, hitting $54.92. 597,746 shares of the stock were exchanged, compared to its average volume of 529,217. The stock has a market capitalization of $2.60 billion, a price-to-earnings ratio of 15.38, a P/E/G ratio of 1.70 and a beta of 0.34. Prestige Consumer Healthcare has a 52 week low of $42.62 and a 52 week high of $71.07. The company has a debt-to-equity ratio of 1.06, a quick ratio of 2.25 and a current ratio of 3.23. The company’s 50-day moving average price is $48.82 and its 200 day moving average price is $56.06.

Key Prestige Consumer Healthcare News

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.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. UMB Bank n.a. lifted its holdings in Prestige Consumer Healthcare by 110.1% in the fourth quarter. UMB Bank n.a. now owns 418 shares of the company’s stock valued at $26,000 after buying an additional 219 shares during the period. Danske Bank A S acquired a new stake in Prestige Consumer Healthcare during the 3rd quarter worth $37,000. Brown Brothers Harriman & Co. acquired a new stake in Prestige Consumer Healthcare during the 3rd quarter worth $44,000. Geneos Wealth Management Inc. grew its holdings in Prestige Consumer Healthcare by 92.8% during the 1st quarter. Geneos Wealth Management Inc. now owns 559 shares of the company’s stock worth $48,000 after acquiring an additional 269 shares during the period. Finally, CIBC Private Wealth Group LLC raised its position in shares of Prestige Consumer Healthcare by 142.8% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 1,100 shares of the company’s stock valued at $69,000 after acquiring an additional 647 shares during the last quarter. Institutional investors own 99.95% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the company. Oppenheimer cut Prestige Consumer Healthcare from an “outperform” rating to a “market perform” rating in a report on Thursday, May 14th. Zacks Research cut Prestige Consumer Healthcare from a “hold” rating to a “strong sell” rating in a report on Monday, May 18th. 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 research note on Friday, May 15th. Finally, Weiss Ratings cut Prestige Consumer Healthcare from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, June 25th. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $70.75.

About Prestige Consumer Healthcare

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).