Prestige Consumer Healthcare (NYSE: PBH) announced its quarterly earnings on Thursday, revealing a earnings per share (EPS) of $1.14. This figure fell short of analysts’ expectations, which had predicted an EPS of $1.16. According to FiscalAI, the company’s revenue for the quarter reached $283.44 million, also below the consensus estimate of $286.93 million.
The firm’s net margin stood at 18.09%, with a return on equity of 12.43%. When compared to the same quarter last year, the current revenue reflects a decline of 2.4%, with previous earnings recorded at $1.22 per share.
Quarterly Performance and Future Outlook
Prestige Consumer Healthcare provided an update on its fiscal 2026 guidance, projecting an EPS of approximately $4.54. The company noted improvements in the supply chain for its Clear Eyes product line, attributing this progress to the acquisition of Pillar Five and the installation of a new high-speed production line. Management anticipates further enhancements in supply through the fourth quarter and into the 2026 calendar year.
During the conference call, it was highlighted that the decline in revenue for Q3 was mainly driven by supply constraints relating to Clear Eyes and a general softness in the analgesics and cough & cold categories. Notably, the company reported a year-to-date free cash flow of $208.8 million, an increase of 12.9%. This strong cash generation supports a disciplined capital allocation strategy, which includes the recent acquisition of Pillar Five for approximately $110 million and a share repurchase of over $150 million, representing roughly 5% of outstanding shares. The firm maintains a net debt of about $1 billion with a leverage ratio of 2.6x.
Market Reaction and Analyst Opinions
Following the earnings announcement, shares of Prestige Consumer Healthcare fell by 2.2%, trading down $1.45 to reach $65.58. The trading volume on this day was significantly higher than the average, with 528,495 shares exchanged compared to an average of 378,281. The company’s stock has seen a 12-month low of $57.25 and a high of $90.04.
Analysts have mixed opinions on the stock, with several research firms providing updated ratings. Weiss Ratings maintained a “hold” rating, while Oppenheimer lowered its price target from $82.00 to $72.00 but still rated it as “outperform.” Zacks Research upgraded the stock from a “strong sell” to a “hold” rating. Canaccord Genuity Group revised its price objective from $100.00 to $88.00 and kept a “buy” rating, while Jefferies Financial Group adjusted its target from $70.00 to $66.00, maintaining a “hold” rating. Overall, the consensus rating on the stock is classified as “Moderate Buy,” with an average price target of $84.50.
Key stakeholders have also adjusted their positions in the company. CIBC Private Wealth Group LLC significantly increased its stake by 142.8% in the third quarter, now holding 1,100 shares valued at about $69,000. Several other institutional investors have also acquired new stakes, indicating continued interest in Prestige Consumer Healthcare despite recent performance fluctuations.
Prestige Consumer Healthcare is recognized as a leading manufacturer and marketer of branded over-the-counter healthcare products. Its portfolio includes popular brands such as Clear Eyes, Carmex, and Dramamine, catering to a variety of consumer health needs including pain relief and digestive health.
The company plans to provide further details on its 2027 outlook during its next earnings call scheduled for May.
