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Factors to Know Ahead of Prestige Consumer (PBH) Q4 Earnings

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Prestige Consumer Healthcare Inc. (PBH - Free Report) is likely to see a decline in the top and bottom line when it reports fourth-quarter fiscal 2021 numbers on May 6. The Zacks Consensus Estimate for revenues is pegged at $230.3 million, which indicates a decline of above 8% from the year-ago quarter’s reported figure.

Further, the Zacks Consensus Estimate for fiscal fourth-quarter earnings has remained unchanged at 79 cents per share in the past 30 days. The estimate suggests a decline of almost 4% from the year-ago quarter’s reported figure. Notably, Prestige Consumer delivered an earnings surprise of 5.2% in the last reported quarter. Also, the company has a trailing four-quarter earnings surprise of 11.8%, on average.

Aspects That May Have Impacted Q4 Performance

Prestige Consumer is witnessing lower consumption patterns across certain categories like head lice, cough & cold and motion sickness, thanks to the pandemic. We note that the company’s North American OTC Healthcare unit has been soft as well. In fact, management in its last earnings call stated that it expects the fourth quarter to witness a unique comparison to the prior year owing to a significant lift in March 2020 as consumers hoarded items in the wake of COVID-19. Also, it had anticipated the international unit to somewhat decline sequentially in the fiscal fourth quarter.

On the positive front, Prestige Consumer has been gaining from its strong e-commerce operations, especially amid the coronavirus-induced social distancing trends. Apart from this, the company is focused on making investments toward brand building. In addition, the company’s saving efforts appear encouraging. At its last earnings call, management expected G&A expenses for the fiscal year to be lower than the year-ago levels in dollar terms.

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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Prestige Consumer carries a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.

Ralph Lauren (RL - Free Report) currently has an Earnings ESP of +6.25% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

G-III Apparel (GIII - Free Report)   currently has an Earnings ESP of +0.04% and a Zacks Rank #1.

Funko (FNKO - Free Report) currently has an Earnings ESP of +9.70% and a Zacks Rank #2.

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