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Prestige Consumer (PBH) to Post Q3 Earnings: Factors to Consider

Prestige Consumer Healthcare Inc. PBH is likely to register top-line growth from the year-ago quarter’s reported figure when it reports third-quarter fiscal 2023 earnings on Feb 2, before the market open. The Zacks Consensus Estimate for revenues is pegged at $273 million, indicating a 0.3%  rise from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for earnings in the fiscal third quarter has been stable at $1.01 per share in the past 30 days. The estimate suggests an almost 2% growth from the year-ago quarter’s reported figure. Prestige Consumer delivered an earnings surprise of 2% in the last reported quarter. PBH has a trailing four-quarter earnings surprise of 5.3%, on average.

Key Factors to Note

Prestige Consumer’s performance in the fiscal third quarter is likely to have benefited from its efficient brand-building strategies, robust e-commerce business and market share gains. PBH has been experiencing high demand for a while across certain categories, brands and channels. PBH has been making multi-year e-commerce investments for a while now. These tailwinds along with contributions from the Akorn buyout might aid its quarterly results.

However, a tough operating backdrop, including supply-chain headwinds and inflationary pressures, might have been deterrents. In addition, Prestige Consumer has been encountering cost-related hurdles for a while now. These weaknesses and any deleverage in operating expenses might have hurt Prestige Consumer’s margins in the quarter under review. On its last earnings call, management anticipated a gross margin of little less than 55% in the fiscal third quarter, down from 55.7% recorded in the year-earlier quarter.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Prestige Consumer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Prestige Consumer has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.

Stocks With the Favorable Combination

Here are some companies which according to our model have the right combination of elements to beat earnings this season.

The Kraft Heinz Company KHC currently has an Earnings ESP of +1.51% and a Zacks Rank of 3. KHC is likely to register a bottom-line decline when it reports fourth-quarter 2022 earnings. The Zacks Consensus Estimate for the quarterly EPS of 78 cents suggests a decrease of 1.3% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kraft Heinz’s top line is likely to grow year over year in the fourth quarter. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.1 billion, indicating a rise of almost 6% from the figure reported in the prior-year quarter. KHC delivered an earnings beat of 15.5%, on average, in the trailing four quarters.

Kellogg Company K currently has an Earnings ESP of +6.52% and a Zacks Rank of 3. K is expected to register a top-line and bottom-line improvement when it reports fourth-quarter 2022 numbers.

The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.6 billion, calling for growth of 6.2% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents suggests a 1.2% increase from the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average.

lululemon athletica LULU currently has an Earnings ESP of +0.07% and a Zacks Rank of 3. LULU is likely to register a top-line improvement when it reports fourth-quarter fiscal 2022 numbers.

The Zacks Consensus Estimate for lululemon athletica’s quarterly revenues is pegged at $2.7 billion, calling for growth of 26.4% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of $4.24 suggests a 25.8% increase from the figure reported in the year-ago fiscal quarter. LULU has a trailing four-quarter earnings surprise of 6.7%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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lululemon athletica inc. (LULU) : Free Stock Analysis Report

Kellogg Company (K) : Free Stock Analysis Report

Prestige Consumer Healthcare Inc. (PBH) : Free Stock Analysis Report

The Kraft Heinz Company (KHC) : Free Stock Analysis Report

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