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Factors Influencing Prestige Consumer's (PBH) Q1 Earnings

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Prestige Consumer Healthcare Inc. (PBH - Free Report) is scheduled to release first-quarter fiscal 2020 results on Aug 1, before market open. The company’s earnings have surpassed the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being roughly 3%.

Let’s see what awaits the upcoming quarterly release.

How Are Estimates Faring?

The Zacks Consensus Estimate for first-quarter earnings is pegged at 64 cents, suggesting a decrease of 5.9% from 68 cents in the year-ago quarter. The consensus mark has been stable over the past 30 days. Additionally, the Zacks Consensus Estimate for revenues is pegged at $231.3 million, calling for a decline of approximately 8.9% from the year-ago quarter’s figure.

Factors to Consider

The sale of the Household Cleaning segment has been weighing on Prestige Consumer’s top line for a while. Adverse impacts of this divestiture are likely to persist in the first quarter as well. Moreover, lower retail inventory level is likely to dent the company’s organic revenues. 

Further, adverse impacts stemming from currency fluctuations cannot be ruled out. The metric was a drag in the fourth quarter. Notably, management expects increased advertising and promotion as well as general and administrative spending in the first half of the fiscal, which mars expectation for the quarter under review. 

However, we expect Prestige Consumer’s strong healthcare brands to provide some cushion. We note that the company has been undertaking radical efforts to transform its business and focus solely on healthcare. Also, solid consumption trends across some core brands are expected to be a tailwind. 

Prestige Consumer Healthcare Inc. Price and EPS Surprise

 

What Does the Zacks Model Say?

Our proven model does not show that Prestige Consumer is likely to beat estimates in first-quarter fiscal 2019. A stock needs to have a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Prestige Consumer has an Earnings ESP of 0.00% and a Zacks Rank #2, which make surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Estimates

Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to beat on earnings.

BJ’s Wholesale Club Holdings (BJ - Free Report) has an Earnings ESP of +21.05% and a Zacks Rank #2.

lululemon athletica (LULU - Free Report) has an Earnings ESP of +0.97% and a Zacks Rank #2.

Rent-A-Center has an Earnings ESP of +3.88% and a Zacks Rank #2.

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