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Prestige Consumer Healthcare Inc. (PBH - Free Report) posted first-quarter fiscal 2024 results, wherein both the top and bottom lines came ahead of the Zacks Consensus Estimate. This marks PBH’s ninth straight quarter of an earnings and revenue beat. However, the bottom line declined year over year.
Prestige Consumer’s performance reflects strength in its diversified portfolio, brand-building efforts and a focus on customer service. The company gained from growth in several categories like Gastrointestinal and Dermatological and remains well-positioned for fiscal 2024.
Quarter in Detail
Prestige Consumer posted earnings of $1.06 per share, which surpassed the Zacks Consensus Estimate of $1.01. However, the bottom line declined from the year-ago period’s figure of $1.09.
Total revenues grew 0.8% to $279.3 million and beat the Zacks Consensus Estimate of $278 million. Excluding currency impacts, revenues jumped 7.8%. Revenues were backed by broad-based strength in North America, partly negated by a slight drop in International OTC segment sales.
The gross profit was $154.7 million, down from the $160.1 million reported in the year-ago period. The Non-GAAP adjusted EBITDA came in at around $94 million compared with $94.6 million in the same period last year. Also, the Non-GAAP adjusted EBITDA margin of 33.6% contracted 50 basis points from the year-ago quarter’s figure.
Prestige Consumer Healthcare Inc. Price, Consensus and EPS Surprise
Revenues in the North American OTC Healthcare segment were $246.1 million, up 1.5% from $242.5 million in the year-earlier quarter. The consensus mark for the segment’s revenues stood at $237.3 million. Strength in brands, especially in the Dermatological and Gastrointestinal categories, fueled growth.
Revenues in the International OTC Healthcare segment were $33.2 million, down from the year-ago quarter’s figure of $34.5 million. The downside can be attributed to currency headwinds of $1.9 million.
Financial Update
Prestige Consumer exited the quarter with cash and cash equivalents of $54.6 million, long-term debt (net) of $1,316.7 million and total shareholders’ equity of nearly $1,480.3 million.
Net cash provided by operating activities in the first quarter was $48.1 million. The adjusted free cash flow in the quarter was $46.6 million. Adjusted free cash flow is likely to be at least $240 million in fiscal 2024.
In the first quarter, PBH repurchased nearly 0.4 million shares for $25 million, concluding its earlier authorized program.
Guidance
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 8.3% in the past six months against the industry’s decline of 9.7%.
The Zacks Consensus Estimate for GIII’s current financial-year revenues and EPS suggests growth of 1.9% and 0.4%, respectively, from the year-ago reported figure. G-III Apparel has a trailing four-quarter earnings surprise of 47.4%, on average.
lululemon athletica, which designs, distributes and retails athletic apparel, footwear and accessories, currently carries a Zacks Rank #2 (Buy). The expected EPS growth rate for three to five years is 20%.
The Zacks Consensus Estimate for lululemon’s current financial-year sales and earnings suggests growth of 17.1% and 18.3% from the year-ago period. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.
Crocs, which offers casual lifestyle footwear and accessories, carries a Zacks Rank #2.
The Zacks Consensus Estimate for Crocs’ current financial-year sales and earnings suggests growth of 12.9% and 10.3% from the year-ago period. CROX has a trailing four-quarter earnings surprise of 19.9%, on average.
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Prestige Consumer (PBH) Q1 Earnings Beat Estimates, Decline Y/Y
Prestige Consumer Healthcare Inc. (PBH - Free Report) posted first-quarter fiscal 2024 results, wherein both the top and bottom lines came ahead of the Zacks Consensus Estimate. This marks PBH’s ninth straight quarter of an earnings and revenue beat. However, the bottom line declined year over year.
Prestige Consumer’s performance reflects strength in its diversified portfolio, brand-building efforts and a focus on customer service. The company gained from growth in several categories like Gastrointestinal and Dermatological and remains well-positioned for fiscal 2024.
Quarter in Detail
Prestige Consumer posted earnings of $1.06 per share, which surpassed the Zacks Consensus Estimate of $1.01. However, the bottom line declined from the year-ago period’s figure of $1.09.
Total revenues grew 0.8% to $279.3 million and beat the Zacks Consensus Estimate of $278 million. Excluding currency impacts, revenues jumped 7.8%. Revenues were backed by broad-based strength in North America, partly negated by a slight drop in International OTC segment sales.
The gross profit was $154.7 million, down from the $160.1 million reported in the year-ago period. The Non-GAAP adjusted EBITDA came in at around $94 million compared with $94.6 million in the same period last year. Also, the Non-GAAP adjusted EBITDA margin of 33.6% contracted 50 basis points from the year-ago quarter’s figure.
Prestige Consumer Healthcare Inc. Price, Consensus and EPS Surprise
Prestige Consumer Healthcare Inc. price-consensus-eps-surprise-chart | Prestige Consumer Healthcare Inc. Quote
Segmental Performance
Revenues in the North American OTC Healthcare segment were $246.1 million, up 1.5% from $242.5 million in the year-earlier quarter. The consensus mark for the segment’s revenues stood at $237.3 million. Strength in brands, especially in the Dermatological and Gastrointestinal categories, fueled growth.
Revenues in the International OTC Healthcare segment were $33.2 million, down from the year-ago quarter’s figure of $34.5 million. The downside can be attributed to currency headwinds of $1.9 million.
Financial Update
Prestige Consumer exited the quarter with cash and cash equivalents of $54.6 million, long-term debt (net) of $1,316.7 million and total shareholders’ equity of nearly $1,480.3 million.
Net cash provided by operating activities in the first quarter was $48.1 million. The adjusted free cash flow in the quarter was $46.6 million. Adjusted free cash flow is likely to be at least $240 million in fiscal 2024.
In the first quarter, PBH repurchased nearly 0.4 million shares for $25 million, concluding its earlier authorized program.
Guidance
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 8.3% in the past six months against the industry’s decline of 9.7%.
Take a Look at These Solid Picks
Three better-ranked stocks include G-III Apparel Group, Ltd. (GIII - Free Report) , lululemon athletica (LULU - Free Report) and Crocs, Inc. (CROX - Free Report) .
G-III Apparel, which designs, sources and markets women's and men's apparel, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GIII’s current financial-year revenues and EPS suggests growth of 1.9% and 0.4%, respectively, from the year-ago reported figure. G-III Apparel has a trailing four-quarter earnings surprise of 47.4%, on average.
lululemon athletica, which designs, distributes and retails athletic apparel, footwear and accessories, currently carries a Zacks Rank #2 (Buy). The expected EPS growth rate for three to five years is 20%.
The Zacks Consensus Estimate for lululemon’s current financial-year sales and earnings suggests growth of 17.1% and 18.3% from the year-ago period. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.
Crocs, which offers casual lifestyle footwear and accessories, carries a Zacks Rank #2.
The Zacks Consensus Estimate for Crocs’ current financial-year sales and earnings suggests growth of 12.9% and 10.3% from the year-ago period. CROX has a trailing four-quarter earnings surprise of 19.9%, on average.