Prestige Consumer Healthcare (NYSE:PBH) Issues Quarterly Earnings Results

Prestige Consumer Healthcare (NYSE:PBH) posted its quarterly earnings results on Thursday. The company reported $0.98 earnings per share for the quarter, beating the consensus estimate of $0.89 by $0.09, FiscalAI reports. The business had revenue of $265.71 million for the quarter, compared to the consensus estimate of $250.34 million. Prestige Consumer Healthcare had a return on equity of 11.39% and a net margin of 15.57%.The company’s quarterly revenue was up 6.5% compared to the same quarter last year. During the same quarter in the previous year, the business 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 Performance

Shares of NYSE PBH traded up $0.49 during trading on Friday, reaching $54.92. 597,746 shares of the company traded hands, compared to its average volume of 529,217. The stock has a market cap of $2.60 billion, a P/E ratio of 15.38, a PEG ratio of 1.69 and a beta of 0.34. The firm’s fifty day simple moving average is $48.82 and its 200 day simple moving average is $56.06. The company has a current ratio of 3.23, a quick ratio of 2.25 and a debt-to-equity ratio of 1.06. Prestige Consumer Healthcare has a 12-month low of $42.62 and a 12-month high of $71.07.

Institutional Trading of Prestige Consumer Healthcare

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. UMB Bank n.a. raised its position in Prestige Consumer Healthcare by 110.1% during the fourth quarter. UMB Bank n.a. now owns 418 shares of the company’s stock valued at $26,000 after acquiring an additional 219 shares in the last quarter. Danske Bank A S purchased a new stake in Prestige Consumer Healthcare in the 3rd quarter worth approximately $37,000. Brown Brothers Harriman & Co. purchased a new stake in Prestige Consumer Healthcare in the 3rd quarter worth approximately $44,000. Geneos Wealth Management Inc. grew its stake in shares of 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 purchasing an additional 269 shares during the period. Finally, CIBC Private Wealth Group LLC grew its stake 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 worth $69,000 after purchasing an additional 647 shares during the period. 99.95% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about 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 research firms recently commented on PBH. Canaccord Genuity Group decreased 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. Zacks Research downgraded shares of Prestige Consumer Healthcare from a “hold” rating to a “strong sell” rating in a report on Monday, May 18th. Oppenheimer lowered shares of Prestige Consumer Healthcare from an “outperform” rating to a “market perform” rating in a research report on Thursday, May 14th. Finally, Weiss Ratings cut shares of Prestige Consumer Healthcare from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Thursday, June 25th. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Prestige Consumer Healthcare has an average rating of “Hold” and a consensus 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).