Prestige Consumer Healthcare (NYSE: PBH) announced its quarterly earnings on Thursday, revealing a disappointing performance for the third quarter. The company reported earnings of $1.14 per share, falling short of analysts’ expectations of $1.16 per share, according to FiscalAI. Revenue for the quarter reached $283.44 million, also below the consensus estimate of $286.93 million. This marks a 2.4% decline in revenue compared to the same period last year.
In the previous year, Prestige Consumer Healthcare recorded earnings of $1.22 per share. The firm’s net margin stood at 18.09%, with a return on equity of 12.43%. The company has since updated its fiscal year 2026 guidance to reflect an expected earnings per share range of $4.540 to $4.540.
Operational Challenges and Future Outlook
Management highlighted several operational challenges affecting performance, particularly in the Clear Eyes product line. Supply constraints and category softness in analgesics, as well as cough and cold products, contributed to the revenue decline. The firm noted that improvements in Clear Eyes supply are underway, with expectations for progress in the fourth quarter and throughout calendar year 2026. The company recently acquired Pillar Five and initiated the installation of a new high-speed production line, which is anticipated to enhance internal production capabilities and support SKU expansion.
Despite the revenue setbacks, Prestige Consumer Healthcare reported strong cash generation, with year-to-date free cash flow of $208.8 million, a 12.9% increase from the previous year. This financial strength enabled the company to complete the approximately $110 million acquisition of Pillar Five and repurchase more than $150 million in shares, representing around 5% of outstanding shares. The company’s net debt remains around $1 billion, with a leverage ratio of approximately 2.6x.
Market Response and Analyst Ratings
Following the earnings announcement, shares of Prestige Consumer Healthcare declined by 2.2%, closing at $65.58 on Thursday. Trading volume reached 528,495 shares, significantly higher than the average volume of 378,281 shares. The company’s stock has experienced volatility over the past year, with a low of $57.25 and a high of $90.04. Key financial metrics include a quick ratio of 2.51, a current ratio of 3.70, and a debt-to-equity ratio of 0.55. The market capitalization stands at $3.15 billion, with a price-to-earnings ratio of 16.27 and a price-to-earnings growth ratio of 2.02.
Institutional investors have been active in the company’s stock. Notably, CIBC Private Wealth Group LLC increased its stake in Prestige Consumer Healthcare by 142.8% during the third quarter, now holding 1,100 shares valued at approximately $69,000. Other significant transactions include new positions taken by CIBC Bancorp USA Inc. and Danske Bank A S, among others. Currently, institutional investors own 99.95% of the company’s shares.
In terms of analyst sentiment, several firms have recently updated their ratings on Prestige Consumer Healthcare. Weiss Ratings maintained a “hold” rating, while Oppenheimer lowered its price target from $82.00 to $72.00 with an “outperform” rating. Zacks Research upgraded the stock from “strong sell” to “hold,” and Canaccord Genuity Group reduced its price objective from $100.00 to $88.00, maintaining a “buy” rating.
Overall, Prestige Consumer Healthcare faces a challenging environment as it navigates operational hurdles while striving to maintain financial stability and investor confidence. The upcoming conference call in May is anticipated to provide further insights into the company’s performance and strategic direction for 2027.
