Prestige Brands jumps on 2Q results and outlook

Prestige Brands reaches 7-year high on strong fiscal 2nd-quarter results and higher outlook

Associated Press

NEW YORK (AP) -- Prestige Brands Holdings Inc. said Thursday its net income rose 49 percent in the fiscal second quarter after it acquired a package of brands from GlaxoSmithKline PLC.

The company's shares rose to a seven-year high after the company posted strong quarterly results and raised its fiscal-year guidance.

Earlier this year the Tarrytown, N.Y., company paid $660 million to buy 17 over-the-counter product brands from GlaxoSmithKline, including the Beano, Gaviscon and Tagamet gastrointestinal brands, BC and Goody's pain relievers, and Sominex sleep aids. Prestige Brands said its over-the-counter revenue climbed 74 percent during the quarter.

The company also raised its annual net income guidance, saying it now expects to earn between $1.37 and $1.42 per share over the 12 months ending in March. Its previous estimate called for net income of $1.22 to $1.32 per share. Analysts expect $1.34 per share on average, according to FactSet.

Shares of Prestige Brands jumped $2.59, or 15 percent, to $19.98 in afternoon trading. Earlier the stock reached a seven-year high of $20.35.

Prestige Brands said it earned $19.2 million, or 38 cents per share, over the three months ended Sept. 30. A year earlier its net income totaled $12.9 million, or 26 cents per share. If one-time items are excluded the company said its income totaled 42 cents per share. Revenue jumped 53 percent, to $161.9 million from $105.5 million.

Analysts were expecting net income of 33 cents per share and $156.6 million in revenue, on average.

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