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Prestige Consumer (PBH) Q4 Earnings Top Estimates, Revenues Up
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Prestige Consumer Healthcare Inc. (PBH - Free Report) posted strong fourth-quarter fiscal 2023 results as both the top and bottom lines improved year over year and topped the Zacks Consensus Estimate. This marks PBH’s eighth straight quarter of an earnings and revenue beat.
Prestige Consumer generated solid earnings and sales growth in fiscal 2023 due to impressive growth in multiple categories like Cough & Cold and Gastrointestinal along with strength in the International segment. These helped the company counter hurdles related to a restricted supply chain.
Quarter in Detail
Prestige Consumer posted adjusted earnings of $1.07 per share, which surpassed the Zacks Consensus Estimate of $1.04 and our estimate of $1.03. The bottom line increased from the year-ago period’s figure of 91 cents.
Prestige Consumer Healthcare Inc. Price, Consensus and EPS Surprise
Total revenues grew 7.1% to $285.9 million and beat the Zacks Consensus Estimate and our estimate of around $279 million. Excluding currency impacts, revenues jumped 8%. Revenues were backed by strength in both North America and the International OTC segments.
The gross profit was $153.8 million, up from the $148.9 million reported in the year-ago period. The Non-GAAP adjusted EBITDA of $97.5 million increased from $85.4 million in the same period last year. Also, the Non-GAAP adjusted EBITDA margin of 34.1% grew 210 basis points from the year-ago quarter’s figure.
Segmental Performance
Revenues in the North American OTC Healthcare segment were $242.3 million, up from $232.9 million in the year-earlier quarter. Strength in most key brands and categories fueled growth.
Revenues in the International OTC Healthcare segment were $43.6 million, up 28% from the year-ago quarter’s figure of $34 million. The uptick can be attributed to a spike in consumer demand across the segment’s core brands, partly countered by currency headwinds of $1.3 million.
Financial Updates
Prestige Consumer exited the quarter with cash and cash equivalents of $58.5 million, long-term debt (net) of $1,345.8 million and total shareholders’ equity of nearly $1,447 million.
Net cash provided by operating activities in the quarter was $59 million. The adjusted free cash flow in the quarter was $56.4 million.
In fiscal 2023, net cash provided by operating activities was $229.7 million, and adjusted free cash flow amounted to $221.9 million. Adjusted free cash flow is likely to be $240 million in fiscal 2024.
On May 2, 2023, management authorized share buybacks of up to $25 million, which is valid up to May 2024.
Guidance
PBH’s performance reflects strength in its diversified portfolio, brand-building efforts and focus on customer service. The company is well-positioned for continued growth in fiscal 2024.
Management expects fiscal 2024 organic revenue growth of 1-2%. Revenues are anticipated in the range of $1,135-1,140 million compared with the $1,127.7 million reported in fiscal 2023.
Prestige Consumer envisions earnings per share (EPS) in the range of $4.27-$4.32 in fiscal 2024. In fiscal 2023, the company posted a loss of $1.65 per share and an adjusted EPS of 4.21.
Shares of this Zacks Rank #3 (Hold) company have risen 10.4% in the past six months against the industry’s decline of 6.4%.
Lamb Weston, which operates as a frozen potato product company, currently sports a Zacks Rank #1 (Strong Buy). LW has a trailing four-quarter earnings surprise of 47.6%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Lamb Weston’s current fiscal-year EPS suggests an increase of 116.8% from the year-ago reported number.
General Mills, a food and beverage product company, currently has a Zacks Rank #2 (Buy). GIS has a trailing four-quarter earnings surprise of 8.1%, on average.
The Zacks Consensus Estimate for General Mills’ current fiscal-year sales and earnings suggests growth of 6.3% and 7.4%, respectively, from the corresponding year-ago reported figures.
Conagra Brands, which operates as a consumer-packaged goods food company, currently carries a Zacks Rank #2. CAG has a trailing four-quarter earnings surprise of 13.2%, on average.
The Zacks Consensus Estimate for Conagra Brands’ current fiscal-year sales and earnings suggests an increase of 7.1% and 16.5%, respectively, from the year-ago reported number.
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Prestige Consumer (PBH) Q4 Earnings Top Estimates, Revenues Up
Prestige Consumer Healthcare Inc. (PBH - Free Report) posted strong fourth-quarter fiscal 2023 results as both the top and bottom lines improved year over year and topped the Zacks Consensus Estimate. This marks PBH’s eighth straight quarter of an earnings and revenue beat.
Prestige Consumer generated solid earnings and sales growth in fiscal 2023 due to impressive growth in multiple categories like Cough & Cold and Gastrointestinal along with strength in the International segment. These helped the company counter hurdles related to a restricted supply chain.
Quarter in Detail
Prestige Consumer posted adjusted earnings of $1.07 per share, which surpassed the Zacks Consensus Estimate of $1.04 and our estimate of $1.03. The bottom line increased from the year-ago period’s figure of 91 cents.
Prestige Consumer Healthcare Inc. Price, Consensus and EPS Surprise
Prestige Consumer Healthcare Inc. price-consensus-eps-surprise-chart | Prestige Consumer Healthcare Inc. Quote
Total revenues grew 7.1% to $285.9 million and beat the Zacks Consensus Estimate and our estimate of around $279 million. Excluding currency impacts, revenues jumped 8%. Revenues were backed by strength in both North America and the International OTC segments.
The gross profit was $153.8 million, up from the $148.9 million reported in the year-ago period. The Non-GAAP adjusted EBITDA of $97.5 million increased from $85.4 million in the same period last year. Also, the Non-GAAP adjusted EBITDA margin of 34.1% grew 210 basis points from the year-ago quarter’s figure.
Segmental Performance
Revenues in the North American OTC Healthcare segment were $242.3 million, up from $232.9 million in the year-earlier quarter. Strength in most key brands and categories fueled growth.
Revenues in the International OTC Healthcare segment were $43.6 million, up 28% from the year-ago quarter’s figure of $34 million. The uptick can be attributed to a spike in consumer demand across the segment’s core brands, partly countered by currency headwinds of $1.3 million.
Financial Updates
Prestige Consumer exited the quarter with cash and cash equivalents of $58.5 million, long-term debt (net) of $1,345.8 million and total shareholders’ equity of nearly $1,447 million.
Net cash provided by operating activities in the quarter was $59 million. The adjusted free cash flow in the quarter was $56.4 million.
In fiscal 2023, net cash provided by operating activities was $229.7 million, and adjusted free cash flow amounted to $221.9 million. Adjusted free cash flow is likely to be $240 million in fiscal 2024.
On May 2, 2023, management authorized share buybacks of up to $25 million, which is valid up to May 2024.
Guidance
PBH’s performance reflects strength in its diversified portfolio, brand-building efforts and focus on customer service. The company is well-positioned for continued growth in fiscal 2024.
Management expects fiscal 2024 organic revenue growth of 1-2%. Revenues are anticipated in the range of $1,135-1,140 million compared with the $1,127.7 million reported in fiscal 2023.
Prestige Consumer envisions earnings per share (EPS) in the range of $4.27-$4.32 in fiscal 2024. In fiscal 2023, the company posted a loss of $1.65 per share and an adjusted EPS of 4.21.
Shares of this Zacks Rank #3 (Hold) company have risen 10.4% in the past six months against the industry’s decline of 6.4%.
Solid Picks
Some better-ranked consumer staple stocks are Lamb Weston (LW - Free Report) , General Mills (GIS - Free Report) and Conagra Brands (CAG - Free Report) .
Lamb Weston, which operates as a frozen potato product company, currently sports a Zacks Rank #1 (Strong Buy). LW has a trailing four-quarter earnings surprise of 47.6%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Lamb Weston’s current fiscal-year EPS suggests an increase of 116.8% from the year-ago reported number.
General Mills, a food and beverage product company, currently has a Zacks Rank #2 (Buy). GIS has a trailing four-quarter earnings surprise of 8.1%, on average.
The Zacks Consensus Estimate for General Mills’ current fiscal-year sales and earnings suggests growth of 6.3% and 7.4%, respectively, from the corresponding year-ago reported figures.
Conagra Brands, which operates as a consumer-packaged goods food company, currently carries a Zacks Rank #2. CAG has a trailing four-quarter earnings surprise of 13.2%, on average.
The Zacks Consensus Estimate for Conagra Brands’ current fiscal-year sales and earnings suggests an increase of 7.1% and 16.5%, respectively, from the year-ago reported number.