Prestige Brands (PBH) Exceeds Fourth Quarter Earnings and Revenue Estimates

Prestige Brands (PBH) posted quarterly earnings of $0.91 per share, beating Zacks’ consensus estimate of $0.89 per share. That compares to earnings of $0.79 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 2.25%. A quarter ago, this drug distributor was expected to post a profit of $0.89 per share when it actually produced a profit of $0.99, delivering a surprise 11.24% .

In the past four quarters, the company has exceeded consensus EPS estimates four times.

Prestige Brands, part of the Zacks Consumer Products – Discretionary industry, reported revenue of $266.94 million for the quarter ended March 2022, beating the Zacks consensus estimate by 3.38%. That compares to revenues of $237.76 million a year ago. The company has exceeded consensus revenue estimates four times in the past four quarters.

The sustainability of the immediate stock price movement based on recently released numbers and future earnings forecasts will primarily depend on management’s comments on the earnings call.

Shares of Prestige Brands have lost about 8.8% since the start of the year compared to a decline of -9.8% for the S&P 500.

What’s next for prestige brands?

As Prestige Brands has outperformed the market so far this year, the question on investors’ minds is: what’s next for the stock?

There is no easy answer to this key question, but a reliable measure that can help investors answer it is the company’s earnings outlook. This includes not only current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed recently.

Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Prior to this publication of the results, the trend of revisions to estimates for Prestige Brands: mixed. While the magnitude and direction of estimate revisions may change following the release of the company’s earnings report, the current situation translates into a No. 3 (hold) Zacks ranking for the stock. Thus, the shares should move in line with the market in the near future. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how the estimates for the next few quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.11 on $283.56 million in revenue for the upcoming quarter and $4.28 on $1.11 billion in revenue for the current fiscal year.

Investors should be aware that the outlook for the sector can also have a significant impact on stock performance. In terms of Zacks industry rankings, Consumer Discretionary currently sits in the bottom 31% of Zacks more than 250 industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.

RealReal (REAL), another stock in the same sector, has not yet released its results for the quarter ending March 2022. The results are expected to be released on May 10.

This luxury online consignment site is expected to post a quarterly loss of $0.51 per share in its next report, representing a year-over-year change of -4.1%. The consensus EPS estimate for the quarter has been revised upwards by 1.3% in the past 30 days from the current level.

RealReal’s revenue is expected to be $136.29 million, up 37.9% from the prior year quarter.

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