Prestige Brands Holdings Earnings: Reversing to a Loss Following Two Consecutive Quarters of Profit
Prestige Brands Holdings Inc. (NYSE:PBH) reported its results for the fourth quarter. Prestige Brands sells well-recognized, brand name over-the-counter healthcare, household cleaning, and personal care products in a global marketplace.
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Prestige Brands Holdings Earnings Cheat Sheet for the Fourth Quarter
Results: Reported a loss of $15,000 (0 cents per diluted share) in the quarter. Prestige Brands Holdings Inc. had a net income of $6.4 million or 13 cents per share in the year-earlier quarter.
Revenue: Rose 39.1% to $134 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Prestige Brands Holdings Inc. reported adjusted net income of 26 cents per share. By that measure, the company beat the mean estimate of 23 cents per share. Analysts were expecting revenue of $133.2 million.
Quoting Management: “We are pleased with the excellent revenue and adjusted EPS growth in the Company’s fourth fiscal quarter. We recorded our seventh consecutive quarter of organic core OTC growth achieving the highest growth rate in almost two years. With this organic growth performance, Prestige ranks near the top of many CPG industry participants” commented Matthew M. Mannelly, President and CEO. “In less than three years, our clear and consistent value creation strategy has taken hold. We have transformed Prestige into the largest independent OTC products company in the U.S. with a proven ability to generate consistent organic growth in our core OTC business coupled with a leading free cash flow profile,” he said.
For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 31.2%, with the biggest boost coming in the most recent quarter when revenue rose 39.1% from the year earlier quarter.
PBH ended a three-quarter streak of profits when it reported a loss in the latest quarter. The company reported a profit of $9.5 million in the third quarter, a profit of $12.9 million in the second quarter and $14.8 million in the first.
The company has beaten estiamtes for two quarters in a row. In the third quarter, it topped expectations with net income of 25 cents versus a mean estimate of net income of 24 cents per share.
Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for first quarter of the next fiscal year is 31 cents per share, an increase from 30 cents sixty days ago. For the fiscal year, the average estimate has moved up from 95 cents a share to 97 cents over the last sixty days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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