3 Consumer Staples Stocks Attracting Traders Post Earnings

Prestige Brands Holdings Inc. (NYSE:PBH) reported its results for the third quarter. Net income for Prestige Brands Holdings Inc. rose to $9.5 million (19 cents per share) vs. $2.2 million (4 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year earlier quarter. Revenue rose 17.3% to $106.3 million from the year earlier quarter. Prestige Brands Holdings Inc. reported adjusted net income of 25 cents per share. By that measure, the company beat the mean estimate of 24 cents per share. It beat the average revenue estimate of $103.8 million.

Matthew M. Mannelly, CEO, commented, “We are pleased with our third quarter results, which reflect the successful execution of our stated strategy of core OTC growth combined with value-added acquisitions. We registered strong growth from our nine core OTC brands, resulting in solid market share gains across these categories. Both the Little Remedies brand and the PediaCare brand, which we acquired last year, experienced impressive revenue and share gains for both the quarter and the nine month year over year periods, despite a very soft cough/cold season. In addition, our diversified portfolio of OTC brands and platforms helped offset the headwinds of a tough cough/cold season,” he said.

Competitors to Watch: The Procter & Gamble Co. (NYSE:PG), Johnson & Johnson (NYSE:JNJ), Merck & Co., Inc. (NYSE:MRK), Perrigo Company (NASDAQ:PRGO), Watson Pharmaceuticals, Inc. (NYSE:WPI), Hi-Tech Pharmacal Co. (NASDAQ:HITK), Allergan, Inc. (NYSE:AGN), GlaxoSmithKline plc (NYSE:GSK), and Akorn, Inc. (NASDAQ:AKRX).

PepsiCo Inc. (NYSE:PEP) reported its results for the fourth quarter. Net income for PepsiCo Inc. rose to $1.42 billion (89 cents per share) vs. $1.36 billion (85 cents per share) in the same quarter a year earlier. This marks a rise of 3.7% from the year earlier quarter. Revenue rose 11% to $20.16 billion from the year earlier quarter. PepsiCo Inc. reported adjusted net income of $1.15 per share. By that measure, the company beat the mean estimate of $1.13 per share. Analysts were expecting revenue of $19.91 billion.

“In 2011, we delivered solid top- and bottom-line growth,” said PepsiCo Chairman and CEO Indra Nooyi.  “We continued to stimulate strong consumer demand for our products, and our successful pricing and productivity programs partially offset the impacts of inflation.  Importantly, in a year characterized by a challenging macroeconomic environment and political turbulence, we took advantage of gains from strategic adjustments to our portfolio to reinvest in key capabilities and markets.”

Competitors to Watch: The Coca-Cola Company (NYSE:KO), Dr Pepper Snapple Group Inc. (NYSE:DPS), Coca-Cola Enterprises Inc. (NYSE:CCE), Hansen Natural Corporation (NASDAQ:HANS), Reed’s, Inc. (NASDAQ:REED), Cott Corporation (NYSE:COT), National Beverage Corp. (NASDAQ:FIZZ), Jones Soda Co. (NYSE:USA) (NASDAQ:JSDA), Celsius Holdings, Inc. (NASDAQ:CELH), and Fomento Economico Mexicano SAB (NYSE:FMX).

Lorillard Inc. (NYSE:LO) reported net income above Wall Street’s expectations for the fourth quarter. Net income for Lorillard Inc. rose to $310 million ($2.32 per share) vs. $259 million ($1.74 per share) in the same quarter a year earlier. This marks a rise of 19.7% from the year earlier quarter. Revenue rose 8.9% to $1.62 billion from the year earlier quarter. Lorillard Inc. reported adjusted net income of $2.20 per share. By that measure, the company beat the mean estimate of $1.96 per share. It beat the average revenue estimate of $1.08 billion.

“Lorillard had an outstanding fourth quarter which helped the Company once again post record sales and profit for the full year of 2011. Fourth quarter gains in market share, pricing realization and margins resulting from the Company’s strategic initiatives implemented during 2011 all contributed to the strong quarter and year,” said Murray S. Kessler, Chairman, CEO & President. “Importantly, the Company remains bullish on 2012 and its ability to continue to deliver industry leading fundamentals and therefore increased its dividend by 19%.”

Competitors to Watch: Reynolds American, Inc. (NYSE:RAI), Altria Group, Inc. (NYSE:MO), Vector Group Ltd. (NYSE:VGR), Philip Morris Intl. Inc. (NYSE:PM), British American Tobacco (AMEX:BTI), Star Scientific, Inc. (NASDAQ:CIGX), Alliance One Intl., Inc. (NYSE:AOI), and Universal Corporation (NYSE:UVV).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com