Primo Brands (NYSE:PRMB) Issues Earnings Results, Beats Expectations By $0.05 EPS

Primo Brands (NYSE:PRMB) released its earnings results on Wednesday. The company reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.32 by $0.05, FiscalAI reports. The firm had revenue of $1.80 billion for the quarter, compared to analyst estimates of $1.77 billion. Primo Brands had a return on equity of 13.98% and a net margin of 0.88%.The company’s quarterly revenue was up 3.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.36 earnings per share.

Here are the key takeaways from Primo Brands’ conference call:

• Second-quarter net sales rose 4.2% to $1.8 billion, ahead of expectations, while adjusted EBITDA increased 5% to $385 million and margin expanded modestly to 21.4%.
• Direct delivery returned to growth, with comparable sales up 0.4% and a 340-basis-point sequential improvement, supported by better customer service, lower quits and call volumes, and mid-90s on-time-and-full performance.
• Primo raised its 2026 comparable net sales growth outlook for the second consecutive quarter to 2%-4% from 1%-3%, while reaffirming adjusted EBITDA guidance of $1.465 billion-$1.515 billion and adjusted free cash flow guidance of $790 million-$810 million.
• Retail growth remained broad-based, including 30.5% growth in premium water, 4.1% growth in regional spring water, and gains across value and volume share; club and away-from-home channels also delivered mid- to high-single-digit growth.
• Profitability remains exposed to higher transportation costs, tighter freight markets, and commodity inflation, while management plans continued investments in customer service, technology, marketing, and supply-chain capabilities, keeping full-year EBITDA guidance unchanged despite the sales upgrade.

Primo Brands Stock Up 8.2%

NYSE:PRMB traded up $1.91 on Wednesday, hitting $25.20. 6,508,713 shares of the company’s stock were exchanged, compared to its average volume of 4,562,246. The firm has a 50-day moving average price of $23.99 and a 200-day moving average price of $21.54. Primo Brands has a 52 week low of $14.36 and a 52 week high of $26.92. The company has a debt-to-equity ratio of 1.72, a current ratio of 0.98 and a quick ratio of 0.79. The company has a market cap of $9.14 billion, a P/E ratio of 180.89, a price-to-earnings-growth ratio of 1.89 and a beta of 0.74.

Primo Brands Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Monday, August 24th will be paid a $0.12 dividend. This represents a $0.48 annualized dividend and a yield of 1.9%. The ex-dividend date is Monday, August 24th. Primo Brands’s payout ratio is presently 342.86%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Caption Management LLC acquired a new position in shares of Primo Brands during the 3rd quarter worth approximately $27,000. EverSource Wealth Advisors LLC grew its stake in shares of Primo Brands by 102.4% in the second quarter. EverSource Wealth Advisors LLC now owns 2,091 shares of the company’s stock valued at $62,000 after buying an additional 1,058 shares in the last quarter. Picton Mahoney Asset Management increased its holdings in Primo Brands by 65.2% during the fourth quarter. Picton Mahoney Asset Management now owns 2,153 shares of the company’s stock worth $35,000 after buying an additional 850 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its position in Primo Brands by 21,481.8% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,374 shares of the company’s stock worth $39,000 after acquiring an additional 2,363 shares in the last quarter. Finally, Quarry LP lifted its stake in Primo Brands by 516.6% in the fourth quarter. Quarry LP now owns 2,380 shares of the company’s stock valued at $39,000 after acquiring an additional 1,994 shares during the last quarter. 87.71% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several brokerages have recently issued reports on PRMB. Barclays boosted their price target on shares of Primo Brands from $25.00 to $27.00 and gave the company an “overweight” rating in a report on Tuesday, July 21st. JPMorgan Chase & Co. raised their price target on Primo Brands from $26.00 to $29.00 and gave the stock an “overweight” rating in a research report on Thursday, July 16th. Weiss Ratings upgraded Primo Brands from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, May 11th. Royal Bank Of Canada set a $28.00 target price on shares of Primo Brands in a report on Thursday, April 9th. Finally, Wall Street Zen upgraded shares of Primo Brands from a “sell” rating to a “hold” rating in a report on Saturday, May 23rd. Nine investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $26.36.

About Primo Brands

Primo Brands (NYSE: PRMB) is a consumer packaged beverage company that was established as an independent entity following a corporate spin‐off in 2023. The company specializes in the production, marketing and distribution of a broad portfolio of bottled water products, including purified, mineral and sparkling varieties. Through its focus on quality control and innovation, Primo Brands aims to deliver clean, great-tasting water in formats tailored to both at-home consumption and on-the-go lifestyles.

Its product range spans multi-serve and single-serve bottles, aluminum cans and other eco-friendly packaging solutions.