Prestige Consumer Healthcare Inc. (NYSE:PBH) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?
Shareholders of Prestige Consumer Healthcare Inc. (NYSE:PBH) will be pleased this week, given that the stock price is up 11% to US$68.67 following its latest third-quarter results. Prestige Consumer Healthcare reported in line with analyst predictions, delivering revenues of US$283m and statutory earnings per share of US$1.06, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Prestige Consumer Healthcare
Taking into account the latest results, the consensus forecast from Prestige Consumer Healthcare's seven analysts is for revenues of US$1.16b in 2025. This reflects an okay 2.4% improvement in revenue compared to the last 12 months. Prestige Consumer Healthcare is also expected to turn profitable, with statutory earnings of US$4.63 per share. Before this earnings report, the analysts had been forecasting revenues of US$1.16b and earnings per share (EPS) of US$4.60 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$74.20, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Prestige Consumer Healthcare analyst has a price target of US$84.00 per share, while the most pessimistic values it at US$65.00. This is a very narrow spread of estimates, implying either that Prestige Consumer Healthcare is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Prestige Consumer Healthcare's revenue growth is expected to slow, with the forecast 1.9% annualised growth rate until the end of 2025 being well below the historical 4.2% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.0% annually. Factoring in the forecast slowdown in growth, it seems obvious that Prestige Consumer Healthcare is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Prestige Consumer Healthcare's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$74.20, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Prestige Consumer Healthcare. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Prestige Consumer Healthcare analysts - going out to 2026, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Prestige Consumer Healthcare that you need to be mindful of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
