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Prestige Consumer (PBH) to Post Q3 Earnings: Things to Know

Zacks Equity Research

Prestige Consumer Healthcare Inc. PBH is slated to report third-quarter fiscal 2020 results on Feb 6. This healthcare product provider delivered a positive earnings surprise of 4.6% in the last reported quarter. Further, its earnings have outperformed the Zacks Consensus Estimate by nearly 3%, on average, in the trailing four quarters.

The Zacks Consensus Estimate for third-quarter earnings has been stable at 75 cents per share over the past 30 days. This suggests an increase of 2.7% from the year-ago period’s reported figure. However, the consensus mark for revenues stands at $241 million, indicating a dip of 0.4% from the figure reported in the year-ago period.

Prestige Consumer Healthcare Inc. Price and EPS Surprise

Prestige Consumer Healthcare Inc. Price and EPS Surprise

Prestige Consumer Healthcare Inc. price-eps-surprise | Prestige Consumer Healthcare Inc. Quote

Key Factors to Note

Prestige Consumer has been benefiting from its transformation efforts and a strong focus on the healthcare business. Also, the company’s invest-for-growth strategy has been yielding results. Further, the company’s focus on marketing initiatives and innovation bodes well. Apart from this, e-commerce strength has been a driver for Prestige Consumer. The company’s online sales grew considerably in the first half of fiscal 2020. Management, in its last earnings call, stated that it expects continued online sales growth for fiscal 2020, which bodes well for the third quarter.

Markedly, Prestige Consumer’s International OTC Healthcare segment has been performing well for quite some time, courtesy of increased consumption. The Zacks Consensus Estimate for third-quarter revenues of this segment stands at $25.1 million, suggesting growth from $24.6 million reported in the year-ago period.

However, the company’s North American OTC Healthcare segment has been seeing softness owing to retailer inventory reductions. The consensus mark for third-quarter revenues of this segment is pegged at $217 million, which is in line with revenues reported in the year-ago period. Apart from this, the company has been encountering foreign currency headwinds. In its last earnings call, management stated that it expects currency headwinds to weigh on the top line in fiscal 2020, which may have been a deterrent in the quarter under review as well.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Prestige Consumer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Although Prestige Consumer carries a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult.

Stocks With Favorable Combinations

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

The Gap, Inc. GPS currently has an Earnings ESP of +5.43% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Crocs, Inc. CROX presently has an Earnings ESP of +30.00% and a Zacks Rank #3.

Adidas ADDYY currently has an Earnings ESP of +1.06% and a Zacks Rank #3.

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Prestige Consumer Healthcare Inc. (PBH) : Free Stock Analysis Report
 
The Gap, Inc. (GPS) : Free Stock Analysis Report
 
Adidas AG (ADDYY) : Free Stock Analysis Report
 
Crocs, Inc. (CROX) : Free Stock Analysis Report
 
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