Back to top

Image: Bigstock

Why Is Prestige Consumer Healthcare (PBH) Up 3.6% Since Last Earnings Report?

Read MoreHide Full Article

It has been about a month since the last earnings report for Prestige Consumer Healthcare (PBH - Free Report) . Shares have added about 3.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Prestige Consumer Healthcare due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

PBH Q4 Earnings Miss Estimate, Margins Down

Prestige Consumer Healthcare posted fourth-quarter fiscal 2026 adjusted earnings per share of $1.23, down 6.8% from $1.32 a year ago. The figure missed the Zacks Consensus Estimate by 11.7%.

GAAP earnings per share was $1.13 compared with $1.00 a year ago. 

For fiscal 2026, adjusted earnings per share was $4.38 compared with $4.52 in the previous year. 

Revenues

Quarterly revenues totaled $281.6 million, down 5.0% year over year. The figure fell short of the Zacks Consensus Estimate by 4.3%. 

For fiscal 2026, the company generated total revenues of $1.09 billion, down 4.3% from the prior-year figure.

Segmental Performance in Detail

North American OTC Healthcare’s revenues amounted to $234.5 million for the fiscal fourth quarter, down 5.8% year over year. The decrease was primarily due to lower Eye & Ear Care category sales caused by the limited ability to meet demand for Clear Eyes.

International OTC Healthcare’s revenues totaled $47.1 million in the fiscal fourth quarter, down 1% year over year. The weaker revenue performance can be attributed to shipping disruptions in the Middle East and lower sales in the Eye & Ear Care category.

Margin Performance 

The gross profit in the fiscal fourth quarter fell 13.9% year over year to $146.3 million. The gross margin contracted 539 basis points (bps) year over year to 51.9% due to a 6.5% increase in the cost of sales (excluding depreciation). 

During the quarter, advertising and marketing expenses declined 5.2% to $35.1 million, while general and administrative expenses increased 11.9% to $30.3 million. Operating income, excluding depreciation and amortization, totaled $80.9 million, reflecting a 13.4% decrease. The adjusted operating margin contracted 279 bps to 28.7%. 

Financial Details

Prestige Consumer exited the fiscal fourth quarter of 2026 with cash and cash equivalents of $63.9 million compared with $97.9 million a year ago. 

Prestige Consumer generated net cash provided by operating activities of $257.6 million in fiscal 2026, up from $251.5 million in the prior year. 

PBH Sets Fiscal 2027 Targets

PBH revealed its fiscal 2027 outlook, projecting revenues in the range of $1.10-$1.12 billion and organic revenue growth in the band of 1-3%. The Zacks Consensus Estimate for revenues is currently pegged at $1.10 billion.

The company expects adjusted diluted earnings per share between $4.42 and $4.51. The Zacks Consensus Estimate was pegged at $4.54 for the metric.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -13.59% due to these changes.

VGM Scores

Currently, Prestige Consumer Healthcare has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Prestige Consumer Healthcare has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Prestige Consumer Healthcare is part of the Zacks Medical - Products industry. Over the past month, Stryker (SYK - Free Report) , a stock from the same industry, has gained 0%. The company reported its results for the quarter ended March 2026 more than a month ago.

Stryker reported revenues of $6.02 billion in the last reported quarter, representing a year-over-year change of +2.6%. EPS of $2.60 for the same period compares with $2.84 a year ago.

For the current quarter, Stryker is expected to post earnings of $3.49 per share, indicating a change of +11.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.

Stryker has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in