Prestige Consumer (PBH) Stock Rallies 20% in a Year: Here's Why
Prestige Consumer Healthcare Inc. PBH looks strong, with its shares up 19.8% in the past year compared with the industry’s growth of 2.9%. This Zacks Rank #2 (Buy) company has been well-positioned due to the strength of its brand portfolio and growing e-commerce presence. Impressive demand is another key driver.
Over the past 60 days, the Zacks Consensus Estimate for this fiscal year's earnings per share (EPS) has increased by a cent to $4.31. Additionally, the consensus mark for fiscal 2024 sales and earnings suggests a nearly 2.4% rise each from the respective figure reported in the year-ago period.
Key Advantages
Prestige Consumer prides itself on its robust healthcare brand portfolio and has strategically undertaken lucrative acquisitions to strengthen it further. The acquisition of TheraTears and four other over-the-counter consumer brands in the VMS and Cough & Cold categories from Akorn Operating Company LLC, completed in July 2021, holds promising long-term prospects. These acquisitions, along with products like Clear Eyes, have solidified PBH's position in the eye care market.
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The company has been investing in e-commerce initiatives over multiple years, a strategy that paid off well in the first quarter of fiscal 2024 due to the surge in online shopping. Prestige Consumer's e-commerce operations have thrived due to the company’s targeted marketing and content, effective product assortment and substantial investments across various e-commerce partners.
Q1 Revenues and Fiscal 2024 Guidance
In the first quarter of fiscal 2024, Prestige Consumer reported total revenues of $279.3 million, marking a 0.8% increase, which surpassed the Zacks Consensus Estimate of $278 million. Excluding currency impacts, revenues jumped 7.8%. Revenues were backed by broad-based strength in North America.
Prestige Consumer's success can be attributed to its diverse portfolio, brand-building efforts and commitment to exceptional customer service. The company experienced growth across various categories, such as gastrointestinal and dermatological products, positioning itself favorably for fiscal 2024.
Management anticipates organic revenue growth of 1-2% for fiscal 2024, with revenues projected to fall in the range of $1,135-1,140 million compared to $1,127.7 million in fiscal 2023. Additionally, Prestige Consumer envisions an EPS range of $4.27-$4.32 for fiscal 2024. In fiscal 2023, the company posted a loss of $1.65 per share and an adjusted EPS of 4.21.
3 Other Bets
Here, we have highlighted three other top-ranked stocks.
Koninklijke Philips N.V. PHG, a health technology company, currently sports a Zacks Rank #1 (Strong Buy). PHG delivered a positive earnings surprise in the last reported quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Koninklijke Philips’ current fiscal year EPS suggests growth of 9.9% from the year-ago reported figure.
LeMaitre Vascular, Inc. LMAT has a trailing four-quarter earnings surprise of 2.3%, on average. LMAT, which designs, markets, sells, services and supports medical devices and implants for the treatment of peripheral vascular disease, sports a Zacks Rank #1 at present.
The Zacks Consensus Estimate for LeMaitre Vascular’s current financial-year EPS suggests growth of 21.5% from the year-ago reported figure.
Abbott Laboratories ABT, a healthcare product company, currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Abbott Laboratories’ current financial-year EPS suggests a decline of 17.6% from the year-ago reported figure. ABT has a trailing four-quarter earnings surprise of 12.4%, on average.
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Abbott Laboratories (ABT) : Free Stock Analysis Report
Koninklijke Philips N.V. (PHG) : Free Stock Analysis Report
Prestige Consumer Healthcare Inc. (PBH) : Free Stock Analysis Report
LeMaitre Vascular, Inc. (LMAT) : Free Stock Analysis Report
