Prestige Consumer Healthcare Inc. (PBH - Free Report) posted first-quarter fiscal 2022 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and grew year over year. Notably, this marks the company’s 10th straight quarter of a revenue beat. Results gained from the company’s brand-building strategy, market share gains in its leading brands, and a significant increase in the demand in certain categories and channels. Encouragingly, management raised its fiscal 2022 guidance.
This Zacks Rank #3 (Hold) stock has gained 22.5% in the past three months against the industry’s decline of 23.6%.
Quarter in Detail
The company posted adjusted earnings of $1.14 per share, which surpassed the Zacks Consensus Estimate of 86 cents. The bottom line advanced 32.6% year over year.
Total revenues grew 17.3% to $269.2 million and beat the Zacks Consensus Estimate of $234 million. Strength in key brands, driven by a healthy demand across certain categories and channels, aided top-line growth.
Gross profit was $159 million, up 18.8% year over year. Gross margin expanded 70 basis points to 59.1%. Adjusted EBITDA was $99 million, up 13.1% year over year. However, adjusted EBITDA margin contracted 140 bps to 36.8%.
Segmental Performance
Revenues in the North American OTC Healthcare segment were $242.4 million, up from the year-ago quarter’s $210.7 million, driven by a solid performance in key brands, which, in turn, was fueled by the demand in certain categories.
Revenues in the International OTC Healthcare segment were $26.8 million, up from the year-ago quarter’s figure of $18.7 million. The uptick can be attributable to higher consumer activity in Australia, which led to a significant spike in the demand for Hydralyte and other COVID-impacted brands. Gains from foreign currency of nearly $3 million also aided segmental growth.
Financial Updates
The company exited the quarter with cash and cash equivalents of $163.6 million, long-term debt (net) of $1,545.4 million, and total shareholders’ equity of $1,416.2 million.
Net cash provided by operating activities in the quarter under review was $69.3 million. Adjusted free cash flow for the same time frame was $67.8 million. Free cash flow is now anticipated to be $245 million or more for fiscal 2022, up from the earlier mentioned $225 million.
As of Jun 30, 2021, the company’s net debt position was $1.4 billion. Also, management increased debt outstanding by $65 million in the reported quarter for the expected completion of the TheraTears acquisition. TheraTears and other brands, acquired on Jul 1, are likely to add $40 million of revenues and 7 cents of adjusted earnings per share to fiscal 2022 results.
Prestige Consumer Healthcare Inc. Price, Consensus and EPS Surprise
Guidance
Driven by impressive quarterly results, the continued recovery of COVID-impacted brands and positive business momentum; management raised its fiscal 2022 view. The company now anticipates revenues of $1,045 million or more, up from the earlier mentioned $957-$962 million. Organic growth is projected to be 6%, which reflects a sharp improvement from the previously communicated 1.5-2%. Finally, the company envisions adjusted earnings per share of $3.90 or more, up from $3.58 or more mentioned before.
The Zacks Consensus Estimate for earnings is pegged at $3.60. In fiscal 2021, Prestige Consumer’s top and bottom lines were at $943.4 million and $3.24 per share, respectively.
3 Stocks to Consider
Gildan Activewear (GIL - Free Report) has a long-term earnings growth rate of 28.5%. The company has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Crocs (CROX - Free Report) currently has an impressive long-term earnings growth rate of 15% and a Zacks Rank #2.
Whirlpool Corporation (WHR - Free Report) presently has a Zacks Rank #2 and a long-term earnings growth rate of 8.1%.
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Prestige Consumer Healthcare Inc. (PBH - Free Report) posted first-quarter fiscal 2022 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and grew year over year. Notably, this marks the company’s 10th straight quarter of a revenue beat. Results gained from the company’s brand-building strategy, market share gains in its leading brands, and a significant increase in the demand in certain categories and channels. Encouragingly, management raised its fiscal 2022 guidance.
This Zacks Rank #3 (Hold) stock has gained 22.5% in the past three months against the industry’s decline of 23.6%.
Quarter in Detail
The company posted adjusted earnings of $1.14 per share, which surpassed the Zacks Consensus Estimate of 86 cents. The bottom line advanced 32.6% year over year.
Total revenues grew 17.3% to $269.2 million and beat the Zacks Consensus Estimate of $234 million. Strength in key brands, driven by a healthy demand across certain categories and channels, aided top-line growth.
Gross profit was $159 million, up 18.8% year over year. Gross margin expanded 70 basis points to 59.1%. Adjusted EBITDA was $99 million, up 13.1% year over year. However, adjusted EBITDA margin contracted 140 bps to 36.8%.
Segmental Performance
Revenues in the North American OTC Healthcare segment were $242.4 million, up from the year-ago quarter’s $210.7 million, driven by a solid performance in key brands, which, in turn, was fueled by the demand in certain categories.
Revenues in the International OTC Healthcare segment were $26.8 million, up from the year-ago quarter’s figure of $18.7 million. The uptick can be attributable to higher consumer activity in Australia, which led to a significant spike in the demand for Hydralyte and other COVID-impacted brands. Gains from foreign currency of nearly $3 million also aided segmental growth.
Financial Updates
The company exited the quarter with cash and cash equivalents of $163.6 million, long-term debt (net) of $1,545.4 million, and total shareholders’ equity of $1,416.2 million.
Net cash provided by operating activities in the quarter under review was $69.3 million. Adjusted free cash flow for the same time frame was $67.8 million. Free cash flow is now anticipated to be $245 million or more for fiscal 2022, up from the earlier mentioned $225 million.
As of Jun 30, 2021, the company’s net debt position was $1.4 billion. Also, management increased debt outstanding by $65 million in the reported quarter for the expected completion of the TheraTears acquisition. TheraTears and other brands, acquired on Jul 1, are likely to add $40 million of revenues and 7 cents of adjusted earnings per share to fiscal 2022 results.
Prestige Consumer Healthcare Inc. Price, Consensus and EPS Surprise
Guidance
Driven by impressive quarterly results, the continued recovery of COVID-impacted brands and positive business momentum; management raised its fiscal 2022 view. The company now anticipates revenues of $1,045 million or more, up from the earlier mentioned $957-$962 million. Organic growth is projected to be 6%, which reflects a sharp improvement from the previously communicated 1.5-2%. Finally, the company envisions adjusted earnings per share of $3.90 or more, up from $3.58 or more mentioned before.
The Zacks Consensus Estimate for earnings is pegged at $3.60. In fiscal 2021, Prestige Consumer’s top and bottom lines were at $943.4 million and $3.24 per share, respectively.
3 Stocks to Consider
Gildan Activewear (GIL - Free Report) has a long-term earnings growth rate of 28.5%. The company has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Crocs (CROX - Free Report) currently has an impressive long-term earnings growth rate of 15% and a Zacks Rank #2.
Whirlpool Corporation (WHR - Free Report) presently has a Zacks Rank #2 and a long-term earnings growth rate of 8.1%.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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