Prestige Consumer (PBH) Q1 Earnings Top Estimates, Revenues Up
Prestige Consumer Healthcare Inc. PBH posted first-quarter fiscal 2023 results, wherein the top and bottom lines beat the respective Zacks Consensus Estimate and the former increased year over year. This marks the company’s fif5th straight quarter of earnings and revenue (combined) beat. Prestige Consumer continued to benefited from its vast brand portfolio and solid business strategy.
Quarter in Detail
Prestige Consumer posted earnings of $1.09 per share, which surpassed the Zacks Consensus Estimate of $1.03. However, the bottom line declined from the $1.14 recorded in the year-ago period.
Prestige Consumer Healthcare Inc. Price, Consensus and EPS Surprise
Prestige Consumer Healthcare Inc. price-consensus-eps-surprise-chart | Prestige Consumer Healthcare Inc. Quote
Total revenues grew 2.9% to $277.1 million and beat the Zacks Consensus Estimate of $268 million. Excluding currency impacts and contributions from the Akorn buyout, revenues fell 1.2%. Revenues were backed by strength in key brands, partly negated by tough comparisons with the year-ago period that witnessed considerably high demand across certain categories, brands and channels, which that were earlier hurt by the pandemic.
The gross profit was $160.2 million, up from the $159 million reported in the year-ago period. The operating income of $87 million decreased from $91.3 million in the same period last year.
Segmental Performance
Revenues in the North American OTC Healthcare segment were $242.5 million, nearly flat year over year. Strength in key brands wasere offset by tough comparisons with the year-ago period that witnessed considerably high demand across certain categories, brands and channels, that which were earlier hurt by the pandemic, especially motion sickness. Gains of about $12.4 million from the Akorn acquisition also aided segmental growth.
Revenues in the International OTC Healthcare segment were $34.5 million, up 28.9% from the year-ago quarter’s figure of $26.8 million. The uptick can be attributed to a spike in demand for Hydralyte, partially countered by currency headwinds of roughly $1 million.
Financial Updates
Prestige Consumer exited the quarter with cash and cash equivalents of $35.9 million, long-term debt (net) of $1,472.4 million and total shareholders’ equity of $1,584.7 million.
Net cash provided by operating activities in the quarter under review was $58.2 million. The Aadjusted free cash flow for the same time frameperiod was $57.2 million. The Aadjusted free cash flow is anticipated at $260 million or more for fiscal 2023.
During the quarter, the company repurchased 0.7 million shares for $37.7 million. As of Jun 30, 2022, PBH’s net debt position was roughly $1.5 billion.
Guidance
Management reiterated its guidance for fiscal 2023, even amid a dynamic supply-chain and inflationary scenario, on the back ofdue to its solid portfolio and three-pillar business strategy. These include brand building, maintaining a robust financial status and optimizing capital allocation.
Management anticipates organic sales growth in the range of 2-3% in fiscal 2023. For fiscal 2023, Prestige Consumer anticipates revenues in the range of $1,120-$1,130 million compared with the $1,086.8 million reported in fiscal 2022. Also, PBH envisions adjusted earnings per share (EPS) in the band of $4.18-$4.23 compared with the $4.06 recorded in fiscal 2022.
This Zacks Rank #3 (Hold) stock has risen 11% in the past three months compared towith the industry’s decline of 4.4%.
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