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PBH's Q3 Earnings Miss Estimates, Revenues Surpass, Stock Up
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Key Takeaways
PBH posted Q3 EPS of $1.14, down 6.6% and missing estimates, while revenues beat expectations.
PBH's North American OTC sales fell on weak Clear Eyes supply, while International OTC rose 7.2%.
PBH expanded gross margin to 56.4% but saw adjusted operating income drop 8.9%.
Prestige Consumer Healthcare Inc. (PBH - Free Report) delivered third-quarter fiscal 2026 diluted earnings per share (EPS) of $1.14, down 6.6% from the year-ago period’s figure. The metric also missed the Zacks Consensus Estimate by 1.3%.
PBH’s Q3 Revenues
Total revenues in the third quarter dipped 2.4% year over year (2.2% excluding the impact of foreign currency) to $283.4 million. The metric topped the Zacks Consensus Estimate by 0.48%.
Since the Feb. 5 earnings announcement, PBH shares have edged up 0.6%, closing yesterday’s session at $65.97.
PBH’s Segments in Detail
The company conducts its operations through two reportable segments — North American OTC Healthcare and International OTC Healthcare.
Revenues in the North American OTC Healthcare segment were $235.7 million, down 1.3% from the year-earlier quarter. Our model projected the segment’s revenues to be $237.5 million in the third quarter. The revenue decrease was primarily due to lower Eye & Ear Care category sales, mainly from the limited ability to supply demand for Clear Eyes.
Prestige Consumer Healthcare Inc. Price, Consensus and EPS Surprise
Revenues in the International OTC Healthcare segment were $47.7 million, up 7.2% from the year-ago quarter’s figure. The lower revenue performance was driven by lower Eye & Ear Care category sales. Our model’s projected revenues from this segment were $44.7 million.
PBH’s Margin Performance
The gross profit in the fiscal third quarter fell 1.9% year over year to $159.8 million. The gross margin expanded 25 basis points (bps) year over year to 56.4% due to a 2.9% decrease in the cost of sales (excluding depreciation).
During the quarter, advertising and marketing expenses rose 5.6% to $40 million, while general and administrative expenses increased 13.3% to 30 million. The adjusted operating income (excluding depreciation and amortization) in the quarter under review was $90.1 million, highlighting a decrease of 8.9%. The adjusted operating margin contracted 226 bps to 31.8%.
PBH’s Financial Update
Prestige Consumer exited the fiscal third quarter of 2026 with cash and cash equivalents of $52.4 million compared with the $119.1 million recorded at the end of the second quarter. Net long-term debt totaled $1.03 billion compared with $993.1 million at the second quarter-end.
The cumulative net cash provided by operating activities in the third quarter was $214.8 million compared with $189.7 million in the year-ago period.
PBH’s Fiscal 2026 Guidance
The company provided an updated outlook for fiscal 2026.
Revenues for the full year are now expected to be roughly $1,100 million (earlier $1,100 to $1,115 million). The Zacks Consensus Estimate for the same is pegged at $1.10 billion.
Prestige Consumer Healthcare expects fiscal 2026 diluted EPS to be approximately $4.54 (previously between $4.54 and $4.58). The Zacks Consensus Estimate for EPS stands at $4.54.
Free cash flow for the full year is likely to be $245 million or more (unchanged).
Our Take on PBH
PBH exited the fiscal third quarter of 2026 with an earnings miss and a revenue beat. Revenues were down on a year-over-year basis due to weaker Eye and Ear care category sales stemming from Clear Eyes supply constraints. Prestige Consumer continues to navigate a challenging consumer backdrop, as shoppers change where they buy amid tariffs, inflation, government shutdown, public announcements related to acetaminophen and more.
The contraction of the operating margin is also discouraging. The company narrowed its fiscal 2026 sales outlook, citing slower order patterns in other channels facing shopper headwinds likely to offset continued consumption momentum in the growth channels of business, like mass and e-commerce.
PBH’s Zacks Rank and Key Picks
Prestige Consumer Health currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Cardinal Health (CAH - Free Report) and Align Technology (ALGN - Free Report) .
Intuitive Surgical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $2.53, which surpassed the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 12.7% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 13.24%.
Cardinal Health, carrying a Zacks Rank #2 (Buy) at present, posted a second-quarter fiscal 2026 adjusted EPS of $2.63, exceeding the Zacks Consensus Estimate by 10%. Revenues of $65.6 billion topped the Zacks Consensus Estimate by 0.9%.
CAH has a long-term earnings growth rate of 15% compared with the industry’s 9.6% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 9.3%.
Align Technology, carrying a Zacks Rank #2 at present, posted a fourth-quarter 2025 adjusted EPS of $3.29, exceeding the Zacks Consensus Estimate by 10.1%. Revenues of $1.05 billion outperformed the Zacks Consensus Estimate by 5.3%.
ALGN has an estimated long-term earnings growth rate of 10.1% compared with the industry’s 9.5% growth. The company’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.16%.
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PBH's Q3 Earnings Miss Estimates, Revenues Surpass, Stock Up
Key Takeaways
Prestige Consumer Healthcare Inc. (PBH - Free Report) delivered third-quarter fiscal 2026 diluted earnings per share (EPS) of $1.14, down 6.6% from the year-ago period’s figure. The metric also missed the Zacks Consensus Estimate by 1.3%.
PBH’s Q3 Revenues
Total revenues in the third quarter dipped 2.4% year over year (2.2% excluding the impact of foreign currency) to $283.4 million. The metric topped the Zacks Consensus Estimate by 0.48%.
Since the Feb. 5 earnings announcement, PBH shares have edged up 0.6%, closing yesterday’s session at $65.97.
PBH’s Segments in Detail
The company conducts its operations through two reportable segments — North American OTC Healthcare and International OTC Healthcare.
Revenues in the North American OTC Healthcare segment were $235.7 million, down 1.3% from the year-earlier quarter. Our model projected the segment’s revenues to be $237.5 million in the third quarter. The revenue decrease was primarily due to lower Eye & Ear Care category sales, mainly from the limited ability to supply demand for Clear Eyes.
Prestige Consumer Healthcare Inc. Price, Consensus and EPS Surprise
Prestige Consumer Healthcare Inc. price-consensus-eps-surprise-chart | Prestige Consumer Healthcare Inc. Quote
Revenues in the International OTC Healthcare segment were $47.7 million, up 7.2% from the year-ago quarter’s figure. The lower revenue performance was driven by lower Eye & Ear Care category sales. Our model’s projected revenues from this segment were $44.7 million.
PBH’s Margin Performance
The gross profit in the fiscal third quarter fell 1.9% year over year to $159.8 million. The gross margin expanded 25 basis points (bps) year over year to 56.4% due to a 2.9% decrease in the cost of sales (excluding depreciation).
During the quarter, advertising and marketing expenses rose 5.6% to $40 million, while general and administrative expenses increased 13.3% to 30 million. The adjusted operating income (excluding depreciation and amortization) in the quarter under review was $90.1 million, highlighting a decrease of 8.9%. The adjusted operating margin contracted 226 bps to 31.8%.
PBH’s Financial Update
Prestige Consumer exited the fiscal third quarter of 2026 with cash and cash equivalents of $52.4 million compared with the $119.1 million recorded at the end of the second quarter. Net long-term debt totaled $1.03 billion compared with $993.1 million at the second quarter-end.
The cumulative net cash provided by operating activities in the third quarter was $214.8 million compared with $189.7 million in the year-ago period.
PBH’s Fiscal 2026 Guidance
The company provided an updated outlook for fiscal 2026.
Revenues for the full year are now expected to be roughly $1,100 million (earlier $1,100 to $1,115 million). The Zacks Consensus Estimate for the same is pegged at $1.10 billion.
Prestige Consumer Healthcare expects fiscal 2026 diluted EPS to be approximately $4.54 (previously between $4.54 and $4.58). The Zacks Consensus Estimate for EPS stands at $4.54.
Free cash flow for the full year is likely to be $245 million or more (unchanged).
Our Take on PBH
PBH exited the fiscal third quarter of 2026 with an earnings miss and a revenue beat. Revenues were down on a year-over-year basis due to weaker Eye and Ear care category sales stemming from Clear Eyes supply constraints. Prestige Consumer continues to navigate a challenging consumer backdrop, as shoppers change where they buy amid tariffs, inflation, government shutdown, public announcements related to acetaminophen and more.
The contraction of the operating margin is also discouraging. The company narrowed its fiscal 2026 sales outlook, citing slower order patterns in other channels facing shopper headwinds likely to offset continued consumption momentum in the growth channels of business, like mass and e-commerce.
PBH’s Zacks Rank and Key Picks
Prestige Consumer Health currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Cardinal Health (CAH - Free Report) and Align Technology (ALGN - Free Report) .
Intuitive Surgical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $2.53, which surpassed the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 12.7% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 13.24%.
Cardinal Health, carrying a Zacks Rank #2 (Buy) at present, posted a second-quarter fiscal 2026 adjusted EPS of $2.63, exceeding the Zacks Consensus Estimate by 10%. Revenues of $65.6 billion topped the Zacks Consensus Estimate by 0.9%.
CAH has a long-term earnings growth rate of 15% compared with the industry’s 9.6% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 9.3%.
Align Technology, carrying a Zacks Rank #2 at present, posted a fourth-quarter 2025 adjusted EPS of $3.29, exceeding the Zacks Consensus Estimate by 10.1%. Revenues of $1.05 billion outperformed the Zacks Consensus Estimate by 5.3%.
ALGN has an estimated long-term earnings growth rate of 10.1% compared with the industry’s 9.5% growth. The company’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.16%.