Prestige Brands Holdings Earnings: Here’s Why the Stock is Rising Now

Prestige Brands Holdings Inc. (NYSE:PBH) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 3.07%.

Prestige Brands Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 80% to $0.07 in the quarter versus EPS of $0.35 in the year-earlier quarter.

Revenue: Decreased 2.72% to $143 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Prestige Brands Holdings Inc. reported adjusted EPS income of $0.07 per share. By that measure, the company missed the mean analyst estimate of $0.4. It missed the average revenue estimate of $146.93 million.

Quoting Management: “We are pleased with our performance in the first quarter against our stated strategy to create long-term shareholder value through continued earnings per share growth,” said Matthew Mannelly, CEO. “In addition, we executed against our M&A strategy with the acquisition of Care Pharmaceuticals, an OTC healthcare products company from New South Wales, Australia. Care is a great match for Prestige with a similar business model and a portfolio of strong OTC brands. This is our first international acquisition, one that strategically establishes a beachhead in the attractive Asia Pacific region. This platform allows us to accelerate new product and distribution opportunities and expand our existing Murine® and Clear Eyes® business. As a result of the acquisition, we now anticipate revenue for the full fiscal year to be in the range of $638-$643 million, which includes approximately $13 million in revenue from Care ($15 million AUD). In addition, we expect accretion of $0.04 in earnings per share from this acquisition,” he said.

Key Stats (on next page)…

Revenue decreased 7.45% from $154.51 million in the previous quarter. EPS decreased 80.56% from $0.36 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.43 to a profit $0.44. For the current year, the average estimate has moved up from a profit of $1.61 to a profit of $1.69 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)