Prestige Brands Holdings Inc. Earnings: Double-Digit Revenue Growth Continues

Prestige Brands Holdings Inc. (NYSE:PBH) reported its results for the third 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 Third Quarter

Results: 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.

Actual vs. Wall St. Expectations: 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.

Quoting Management: 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.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 27.4%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 35% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 17.5% and in the first quarter, the figure rose 53.8%.

The company beat estimates last quarter after being in line with expectations in the second quarter with net income of 26 cents per share.

Margins rose in the second quarter after falling the quarter before. Gross margin rose 3.3 percentage points to 51.9% from the quarter earlier quarter. In the first quarter, the figure rose 3.3 percentage points to 51.1% from the year earlier quarter.

Looking Forward: Expectations for the company’s next quarter performance are more favorable than they were a month ago. The average estimate for the fourth quarter is now at 20 cents per share, up from 20 cents. For the fiscal year, the average estimate has moved up from 95 cents a share to 96 cents over the last seven days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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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