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Prestige Consumer's (PBH) Brand Building, Innovation Aid Growth
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Prestige Consumer’s (PBH - Free Report) brand-building strategy, market share gains in its leading brands as well as higher demand in certain categories and channels are major upsides. The stock carries a Zacks Rank #2 (Buy).
Prestige Consumer owns and markets a diverse portfolio of well-recognized consumer brands, a few of which date back more than 100 years. The products are further supported by significant marketing, which is designed to enhance sales growth and long-term profitability across major and core brands. The majority of the company’s core brands, including Monistat, Summer's Eve, Nix, TheraTears and Dramamine, together accounted for approximately 81.9% of total revenues in fiscal 2023.
The company has leveraged these wide arrays of diversified brands across many categories. These have delivered record revenues and consistent EBITDA margins. In the second quarter of fiscal 2024, Prestige Consumer’s strong top-line performance translated into superior earnings and cash flows.
Prestige Consumer emphasizes brand-building and product innovation in niche consumer healthcare categories to improve the lives of its consumers. Its long-term brand-building efforts, combined with efficient marketing, channel development and innovation that drive long-term brand and category growth, have led the company’s brands to continually hold the leading market share position.
In this regard, Goody’s headache powders have grown more than three times more than the overall analgesic category in the fiscal year to date. Having acquired the brand more than 10 years ago, the company successfully leveraged insights from consumers and expanded with targeted offerings, like Goody's Hangover, to meet ever-evolving product needs and preferences. These highly successful products were helped by distinct marketing tactics to attract new customers while strengthening connections with existing ones.
Over the past year, shares of Prestige Consumers have risen 1.2% against the industry’s 9.7% decline.
On the flip side, economic conditions in both the United States and globally have been and will continue to be volatile due to several factors, such as supply-chain constraints, rising interest rates, a high inflationary environment and geopolitical events. These uncertainties could put pressure on prices and supply and potentially affect the demand for Prestige Consumer’s products. In the first half of fiscal 2024, the gross margin was slightly down due to cost inflation, as anticipated.
Prestige Consumer generally relies on brokers and distributors for the sale of its products in foreign countries, having generated approximately 14% of fiscal 2023 revenues from its international business. Hence, fluctuating foreign exchange rates remain a concern.
Haemonetics’ stock has risen 12.1% in the past year. Estimates for Haemonetics’ 2023 earnings have increased from $3.82 to $3.86 in the past 30 days while the same for 2024 have risen from $4.07 to $4.11.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for Insulet’s 2023 earnings per share have increased from $1.61 to $1.90 in the past 30 days. Shares of the company have decreased 42.2% in the past year compared with the industry’s decline of 9.4%.
PODD’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.4%.
Estimates for DexCom’s 2023 earnings per share have increased from $1.23 to $1.41 in the past 30 days. Shares of the company have fallen 11.8% in the past year compared with the industry’s decline of 11.9%.
DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.
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Prestige Consumer's (PBH) Brand Building, Innovation Aid Growth
Prestige Consumer’s (PBH - Free Report) brand-building strategy, market share gains in its leading brands as well as higher demand in certain categories and channels are major upsides. The stock carries a Zacks Rank #2 (Buy).
Prestige Consumer owns and markets a diverse portfolio of well-recognized consumer brands, a few of which date back more than 100 years. The products are further supported by significant marketing, which is designed to enhance sales growth and long-term profitability across major and core brands. The majority of the company’s core brands, including Monistat, Summer's Eve, Nix, TheraTears and Dramamine, together accounted for approximately 81.9% of total revenues in fiscal 2023.
The company has leveraged these wide arrays of diversified brands across many categories. These have delivered record revenues and consistent EBITDA margins. In the second quarter of fiscal 2024, Prestige Consumer’s strong top-line performance translated into superior earnings and cash flows.
Prestige Consumer emphasizes brand-building and product innovation in niche consumer healthcare categories to improve the lives of its consumers. Its long-term brand-building efforts, combined with efficient marketing, channel development and innovation that drive long-term brand and category growth, have led the company’s brands to continually hold the leading market share position.
Prestige Consumer Healthcare Inc. Price
Prestige Consumer Healthcare Inc. price | Prestige Consumer Healthcare Inc. Quote
In this regard, Goody’s headache powders have grown more than three times more than the overall analgesic category in the fiscal year to date. Having acquired the brand more than 10 years ago, the company successfully leveraged insights from consumers and expanded with targeted offerings, like Goody's Hangover, to meet ever-evolving product needs and preferences. These highly successful products were helped by distinct marketing tactics to attract new customers while strengthening connections with existing ones.
Over the past year, shares of Prestige Consumers have risen 1.2% against the industry’s 9.7% decline.
On the flip side, economic conditions in both the United States and globally have been and will continue to be volatile due to several factors, such as supply-chain constraints, rising interest rates, a high inflationary environment and geopolitical events. These uncertainties could put pressure on prices and supply and potentially affect the demand for Prestige Consumer’s products. In the first half of fiscal 2024, the gross margin was slightly down due to cost inflation, as anticipated.
Prestige Consumer generally relies on brokers and distributors for the sale of its products in foreign countries, having generated approximately 14% of fiscal 2023 revenues from its international business. Hence, fluctuating foreign exchange rates remain a concern.
Key Picks
Some top-ranked stocks in the broader medical space are Haemonetics (HAE - Free Report) , Insulet (PODD - Free Report) and DexCom (DXCM - Free Report) . While Haemonetics and DexCom each carry a Zacks Rank #2, Insulet presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ stock has risen 12.1% in the past year. Estimates for Haemonetics’ 2023 earnings have increased from $3.82 to $3.86 in the past 30 days while the same for 2024 have risen from $4.07 to $4.11.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for Insulet’s 2023 earnings per share have increased from $1.61 to $1.90 in the past 30 days. Shares of the company have decreased 42.2% in the past year compared with the industry’s decline of 9.4%.
PODD’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.4%.
Estimates for DexCom’s 2023 earnings per share have increased from $1.23 to $1.41 in the past 30 days. Shares of the company have fallen 11.8% in the past year compared with the industry’s decline of 11.9%.
DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.