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Prestige Consumer Healthcare Inc. (PBH - Free Report) posted second-quarter fiscal 2023 results, wherein the top and the bottom line beat the respective Zacks Consensus Estimate. Revenues increased year over year. This marks PBH’s sixth straight quarter of earnings and revenue beat. Prestige Consumer continued to benefit from its brand portfolio and a solid business strategy.
Quarter in Detail
Prestige Consumer posted earnings of $1.02 per share, which surpassed the Zacks Consensus Estimate of $1.00. The bottom line was flat year over year.
Total revenues grew 4.7% to $289.3 million and beat the Zacks Consensus Estimate of $283 million. Excluding the currency impacts, revenues jumped 5.5%. Revenues were backed by strength in the majority of its key brands and a solid International OTC segment performance.
Image Source: Zacks Investment Research
The gross profit was $161 million, up from the $157.7 million reported in the year-ago period. The adjusted EBITDA of $91.8 million increased from $83.9 million in the same period last year. Also, adjusted EBITDA margin of 31.7% grew 130 basis points from the year-ago quarter’s figure.
Segmental Performance
Revenues in the North American OTC Healthcare segment were $252.1 million, up from $251.7 million in the year-earlier quarter. Strength in key brands, mainly in the Gastrointestinal and Analgesics categories, drove revenues.
Revenues in the International OTC Healthcare segment were $37.2 million, up 51.9% from the year-ago quarter’s figure of $24.5 million. The uptick can be attributed to a spike in demand for Hydralyte, partly countered by currency headwinds of $1.4 million.
Financial Updates
Prestige Consumer exited the quarter with cash and cash equivalents of $42.4 million, long-term debt (net) of $1,438.3 million and total shareholders’ equity of $1,619.8 million.
Net cash provided by operating activities in the first six months of 2022 was $115.8 million. The adjusted free cash flow for the same time frame was $112.4 million. The adjusted free cash flow is anticipated to be $260 million or higher for fiscal 2023.
During the fiscal second quarter, Prestige Consumer repurchased 0.2 million shares for $12.3 million. In the first six months, it bought back 0.9 million shares for $50 million, thus completing its earlier-authorized share repurchase program.
Guidance
Management reiterated its guidance for fiscal 2023, even amid a dynamic supply-chain and inflationary scenario, on the back of its solid portfolio and a three-pillar business strategy. These include brand building, maintaining a robust financial status and optimizing capital allocation.
Management continues to anticipate organic sales growth in the range of 2-3% for fiscal 2023. For the full fiscal, Prestige Consumer expects revenues in the range of $1,120-$1,130 million compared with $1,086.8 million reported in fiscal 2022. PBH still envisions earnings per share (EPS) in the band of $4.18-$4.23 compared with $4.06 recorded in fiscal 2022.
The presently Zacks Rank #4 (Sell) stock has lost 7.9% in the past three months compared with the industry’s decline of 5.3%.
Oxford Industries, which designs, sources, markets, and distributes products of lifestyle and other brands, sports a Zacks Rank #1 (Strong Buy), currently. OXM has a trailing four-quarter earnings surprise of 91.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OXM’s current financial-year EPS suggests growth of 31.2% from the year-ago reported number.
lululemon athletica is a yoga-inspired athletic apparel company. LULU has a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 26.7% and 27%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 10.4%, on average.
Caleres, a footwear dealer, has a Zacks Rank of 2 at present. CAL has a trailing four-quarter earnings surprise of 34.9%, on average.
The Zacks Consensus Estimate for Caleres’ current financial-year sales and EPS suggests growth of 5.6% and 0.9%, respectively, from the year-ago corresponding figures.
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Prestige Consumer (PBH) Q2 Earnings Beat Mark, Revenues Rise
Prestige Consumer Healthcare Inc. (PBH - Free Report) posted second-quarter fiscal 2023 results, wherein the top and the bottom line beat the respective Zacks Consensus Estimate. Revenues increased year over year. This marks PBH’s sixth straight quarter of earnings and revenue beat. Prestige Consumer continued to benefit from its brand portfolio and a solid business strategy.
Quarter in Detail
Prestige Consumer posted earnings of $1.02 per share, which surpassed the Zacks Consensus Estimate of $1.00. The bottom line was flat year over year.
Total revenues grew 4.7% to $289.3 million and beat the Zacks Consensus Estimate of $283 million. Excluding the currency impacts, revenues jumped 5.5%. Revenues were backed by strength in the majority of its key brands and a solid International OTC segment performance.
Image Source: Zacks Investment Research
The gross profit was $161 million, up from the $157.7 million reported in the year-ago period. The adjusted EBITDA of $91.8 million increased from $83.9 million in the same period last year. Also, adjusted EBITDA margin of 31.7% grew 130 basis points from the year-ago quarter’s figure.
Segmental Performance
Revenues in the North American OTC Healthcare segment were $252.1 million, up from $251.7 million in the year-earlier quarter. Strength in key brands, mainly in the Gastrointestinal and Analgesics categories, drove revenues.
Revenues in the International OTC Healthcare segment were $37.2 million, up 51.9% from the year-ago quarter’s figure of $24.5 million. The uptick can be attributed to a spike in demand for Hydralyte, partly countered by currency headwinds of $1.4 million.
Financial Updates
Prestige Consumer exited the quarter with cash and cash equivalents of $42.4 million, long-term debt (net) of $1,438.3 million and total shareholders’ equity of $1,619.8 million.
Net cash provided by operating activities in the first six months of 2022 was $115.8 million. The adjusted free cash flow for the same time frame was $112.4 million. The adjusted free cash flow is anticipated to be $260 million or higher for fiscal 2023.
During the fiscal second quarter, Prestige Consumer repurchased 0.2 million shares for $12.3 million. In the first six months, it bought back 0.9 million shares for $50 million, thus completing its earlier-authorized share repurchase program.
Guidance
Management reiterated its guidance for fiscal 2023, even amid a dynamic supply-chain and inflationary scenario, on the back of its solid portfolio and a three-pillar business strategy. These include brand building, maintaining a robust financial status and optimizing capital allocation.
Management continues to anticipate organic sales growth in the range of 2-3% for fiscal 2023. For the full fiscal, Prestige Consumer expects revenues in the range of $1,120-$1,130 million compared with $1,086.8 million reported in fiscal 2022. PBH still envisions earnings per share (EPS) in the band of $4.18-$4.23 compared with $4.06 recorded in fiscal 2022.
The presently Zacks Rank #4 (Sell) stock has lost 7.9% in the past three months compared with the industry’s decline of 5.3%.
3 Consumer Discretionary Stocks Worth Noting
Here we highlighted three better-ranked stocks, namely, Oxford Industries (OXM - Free Report) , lululemon athletica (LULU - Free Report) and Caleres (CAL - Free Report) .
Oxford Industries, which designs, sources, markets, and distributes products of lifestyle and other brands, sports a Zacks Rank #1 (Strong Buy), currently. OXM has a trailing four-quarter earnings surprise of 91.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OXM’s current financial-year EPS suggests growth of 31.2% from the year-ago reported number.
lululemon athletica is a yoga-inspired athletic apparel company. LULU has a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 26.7% and 27%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 10.4%, on average.
Caleres, a footwear dealer, has a Zacks Rank of 2 at present. CAL has a trailing four-quarter earnings surprise of 34.9%, on average.
The Zacks Consensus Estimate for Caleres’ current financial-year sales and EPS suggests growth of 5.6% and 0.9%, respectively, from the year-ago corresponding figures.