Yahoo Finance Prestige Consumer (PBH) Q3 Earnings & Revenues Top Estimates
Prestige Consumer Healthcare Inc. PBH posted third-quarter fiscal 2023 results, wherein the top and bottom lines beat the respective Zacks Consensus Estimate and improved year over year. This marks PBH’s seventh straight quarter of an earnings and revenue beat. Prestige Consumer continued to benefit from its diversified brand portfolio and a solid business model amid a dynamic consumer and retail landscape.
Quarter in Detail
Prestige Consumer posted earnings of $1.04 per share, which surpassed the Zacks Consensus Estimate of $1.01. The bottom line increased from the year-ago period figure of 99 cents.
Prestige Consumer Healthcare Inc. Price, Consensus and EPS Surprise
Prestige Consumer Healthcare Inc. price-consensus-eps-surprise-chart | Prestige Consumer Healthcare Inc. Quote
Total revenues grew 0.4% to $275.5 million and beat the Zacks Consensus Estimate of $273 million. Excluding currency impacts, revenues jumped 1.8%. Revenues were backed by strength in the Cough and Cold category and a solid International OTC segment performance.
The gross profit was $150.4 million, down from the $155.1 million reported in the year-ago period. The adjusted EBITDA of $94.2 million increased from $90.5 million in the same period last year. Also, the adjusted EBITDA margin of 34.2% grew 120 basis points from the year-ago quarter’s figure.
Segmental Performance
Revenues in the North American OTC Healthcare segment were $236.9 million, down from $240.9 million in the year-earlier quarter. Strength in key brands, mainly the Cough & Cold and Gastrointestinal categories, was countered by soft sales in the Women’s Health and Eye & Ear Care category.
Revenues in the International OTC Healthcare segment were $38.6 million, up 15% from the year-ago quarter’s figure of $33.6 million. The uptick can be attributed to a spike in consumer demand across the segment’s core brands, partly countered by currency headwinds of $2.8 million.
Financial Updates
Prestige Consumer exited the quarter with cash and cash equivalents of $86.4 million, long-term debt (net) of $1,424.1 million and total shareholders’ equity of $1,686.9 million.
Net cash provided by operating activities in the third quarter was $54.9 million. The adjusted free cash flow in the quarter was $53.1 million.
In the first nine months of fiscal 2023, net cash provided by operating activities was $170.7 million, and adjusted free cash flow amounted to $165.5 million. Adjusted free cash flow is likely to be about $220 million in fiscal 2023.
Guidance
The third quarter represented another period of the solid implementation of the company’s three-pillar business strategy. This includes brand building, maintaining a robust financial status and optimizing capital allocation. Management believes that the company is well-positioned for continued growth in fiscal 2024.
Management now expects fiscal 2023 organic revenue growth of nearly 3% compared with the 2-3% growth expected earlier. Revenues are anticipated in the range of $1,120-1,122 million compared with the earlier view of $1,120-$1,130 million.
This Zacks Rank #4 (Sell) company now envisions earnings per share to be roughly $4.18 in fiscal 2023 compared with the band of $4.18-$4.23 projected before.
3 Solid Retail Bets
We have highlighted three better-ranked stocks, including Ralph Lauren RL, Hanesbrands HBI and Oxford Industries OXM
Ralph Lauren currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales suggests growth of 0.3% from the year-ago period. RL, which is a designer, marketer and distributor of lifestyle products, has a trailing four-quarter earnings surprise of 28.7%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hanesbrands, which is a basic apparel company, carries a Zacks Rank #2 at present. HBI has a trailing four-quarter earnings surprise of 2.2%, on average.
The Zacks Consensus Estimate for Hanesbrands’ current financial-year revenues suggests a decline of 8.5% from the year-ago reported figures.
Oxford Industries, an apparel company, carries a Zacks Rank #2. OXM has a trailing four-quarter earnings surprise of 18.9%, on average.
The Zacks Consensus Estimate for Oxford Industries’ current financial-year sales suggests growth of 23.3% from the year-ago period.
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