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

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Prestige Consumer Healthcare Inc. (PBH - Free Report) 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 - Free Report) 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 - Free Report) 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 - Free Report) 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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