Prestige Brands Holdings Inc. (NYSE:PBH) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Prestige Brands Holdings Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 38.46% to $0.36 in the quarter versus EPS of $0.26 in the year-earlier quarter.
Revenue: Rose 15.3% to $154.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Prestige Brands Holdings Inc. reported adjusted EPS income of $0.36 per share. By that measure, the company beat the mean analyst estimate of $0.35. It missed the average revenue estimate of $157.81 million.
Quoting Management: “We are very pleased with the excellent growth shown in revenue and earnings per share for both the fourth quarter and fiscal year ended March 31, 2013. These results reflect the successful integration of the acquired GSK brands and meaningful growth in our core OTC brands,” said Matthew M. Mannelly, CEO. “Revenues for our core OTC brands grew 9.3% in the fourth quarter and approximately 6% for the fiscal year, significantly ahead of category growth for both periods. Our increased investment in brand-building A&P was a key stimulus for these record results,” he said.
Key Stats (on next page)…
Revenue decreased 3.58% from $160.23 million in the previous quarter. EPS decreased 2.7% from $0.37 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.40 to a profit $0.39. For the current year, the average estimate has moved up from a profit of $1.47 to a profit of $1.49 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)