Core Insights - Prestige Consumer Healthcare (PBH) is experiencing strong momentum in the e-commerce channel due to long-term investments and brand-specific digital strategies [1][10] - The company has expanded its brand portfolio through both organic growth and acquisitions, including a recent agreement to acquire Pillar5 Pharma Inc. to enhance its eye care product offerings [4][10] - Despite a stable solvency position, the company faces challenges from a dull macroeconomic environment, including inflationary pressures and supply chain disruptions [11] Financial Performance - Over the past year, PBH's stock has declined by 9.1%, contrasting with the industry's growth of 1.4% and the S&P 500's increase of 18.7% [2] - The company has a market capitalization of $2.97 billion and an earnings yield of 7.3%, significantly higher than the industry's 0.2% yield [2] - PBH has surpassed earnings estimates in three of the last four quarters, with an average surprise of 2.8% [2] Growth Drivers - The acquisition of Pillar5 Pharma is expected to close in the third quarter of fiscal 2026, with minimal ongoing capital expenditure requirements [5][10] - E-commerce sales have shown double-digit growth year-over-year, representing a high-teens percentage of total sales in fiscal 2025, up from approximately 15% the previous year [6][10] - Brand-specific digital strategies have enhanced consumer engagement and retention, with ongoing investments in digital marketing positioning the company for sustained success [7] Solvency and Cost Challenges - As of the end of the second quarter of fiscal 2026, PBH reported no short-term debt and had $119 million in cash and cash equivalents, indicating stable solvency [8][10] - The company anticipates approximately $5 million in tariff costs for fiscal 2026 due to ongoing economic volatility and is implementing cost-saving initiatives to mitigate these impacts [11] Earnings Estimates - The Zacks Consensus Estimate for PBH's fiscal 2026 earnings per share remains unchanged at $4.755, while revenues are projected at $1.11 billion, reflecting a decrease of 2.8% from the previous year [12]

Investors might want to bet on Prestige Consumer Healthcare (PBH) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. ...

Investors interested in stocks from the Medical - Products sector have probably already heard of Prestige Consumer Healthcare (PBH) and Abbott (ABT) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style ...

Core Viewpoint - Premium Brands Holdings Corporation has announced a definitive agreement to acquire Stampede Culinary Partners, Inc. for approximately US$662.5 million, which includes cash and common shares, along with potential earn-out payments based on profitability targets [1][2]. Acquisition Details - The total purchase price for the acquisition is approximately US$662.5 million, consisting of US$512.5 million in cash and US$150 million in common shares, with a potential earn-out of up to US$100 million based on Stampede's profitability over the next two fiscal years [2]. - The acquisition is expected to be immediately accretive to adjusted earnings per share, with mid-single digit percentage accretion in the first year and high-single digit percentage accretion after realizing synergies [7]. Strategic Rationale - The acquisition aims to strengthen Premium Brands' presence in the U.S. foodservice channel and enhance production capabilities through the addition of sous vide cooking capacity [6]. - The company anticipates that Stampede will benefit from trends driving growth in the protein market, which have seen sales increase from US$337 million in 2019 to a current run rate of over US$1.37 billion [4]. Financial Implications - The acquisition price represents a multiple of approximately 9.7x Stampede's estimated fiscal 2025 Adjusted EBITDA, or 7.5x after accounting for anticipated synergies [7]. - Premium Brands expects to achieve a pro forma senior funded debt to adjusted EBITDA ratio of approximately 3.0:1 and a total funded debt to adjusted EBITDA ratio of 3.9:1 following the acquisition [7]. Financing Structure - The company has entered into an agreement with underwriters for a public offering, which includes the sale of subscription receipts and convertible debentures, to raise approximately $280 million and $430 million, respectively, to partially fund the acquisition [11][12]. - The net proceeds from the offering will be used to finance the cash purchase price of the acquisition and reduce existing indebtedness under the company's revolving credit facility [13][18]. Closing Conditions - The closing of the acquisition is subject to customary conditions, including regulatory approvals, and is expected to be completed by the end of January 2026 [10].

Prestige Consumer Healthcare Inc. (NYSE:PBH) is among the cheap healthcare stocks to buy heading into 2026. As of December 7, Prestige Consumer Healthcare Inc. (NYSE:PBH) is a ‘Buy’ or equivalent, with the majority of the analysts bullish on the stock. With a consensus 1-year median price target of $80, the stock has an upside of nearly 32%. According to TheFly, Susan Anderson from Canaccord trimmed the price target on Prestige Consumer Healthcare Inc. (NYSE:PBH) to $88 from $100, while keeping a ‘Buy’ ra ...

Brandes Investment Partners, an asset management company, released its third-quarter 2025 investor letter for its “Brandes Small Cap Value Fund”. A copy of the letter can be downloaded here. The fund returned 11.16% (Class I Shares) in the quarter compared to its benchmark, the Russell 2000 Index’s 12.39% gain, and the Russell 2000 Value Index’s12.60% return. In addition, please check the fund’s top five holdings to know its best picks in 2025. In its third-quarter 2025 investor letter, Brandes Small Cap V ...

Prestige Consumer Healthcare (PBH) closed the last trading session at $60.82, gaining 1.5% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $76.67 indicates a 26.1% upside potential.The mean estimate comprises three short-term price targets with a standard deviation of $9.87. While the lowest estimate of $70.00 indicates a 15.1% increase from the current price level, the most optimi ...

Financial Data and Key Metrics Changes - Q2 revenue was $274.1 million, a decline of 3.4% from $283.8 million in the prior year, primarily due to lower eye and ear care category sales and cough and cold category sales [10][11] - Adjusted EPS was $1.07, slightly down from $1.09 in the prior year, but ahead of expectations due to sales performance [10][11] - Free cash flow for the first half was $134 million, up 10% year-over-year, with a full-year outlook of $245 million or more [5][15] Business Line Data and Key Metrics Changes - The North America segment saw a revenue decrease of 6.1%, while the international segment experienced a revenue increase of 2.7% [11][12] - E-commerce consumption growth remained strong, with double-digit year-over-year growth, driven by long-term investments [4][11] - The DenTek brand achieved over 50% market share in its category, with a focus on dental guards contributing significantly to revenue [6][8] Market Data and Key Metrics Changes - The overall market for eye care products has declined, impacting Clear Eyes' supply and market share [44] - International OTC segment business increased, supported by higher Hydralyte sales, despite Q2 being affected by distributor order timing [12][14] Company Strategy and Development Direction - The company is focused on diversifying its portfolio and channels to drive long-term growth, with a particular emphasis on e-commerce and brand building [4][6] - Plans to enhance shareholder value through share repurchases and potential M&A opportunities, including the acquisition of Pillar Five for approximately $100 million [16][18] - The company anticipates a revenue range of $1.1 billion to $1.115 billion for fiscal 2026, with organic growth expected to decline by approximately 1.5% to 3% [17] Management's Comments on Operating Environment and Future Outlook - Management noted heightened uncertainty in the business environment due to supply chain constraints, high inflation, and geopolitical events [3] - Confidence in the business strategy and diversified portfolio is strong, with expectations for improved supply of Clear Eyes in the second half of the year [17][34] - The company has not seen significant impacts from macroeconomic trends on its needs-based product categories [33][34] Other Important Information - Gross margin for the first half was 55.7%, up 60 basis points year-over-year, with expectations for a gross margin of approximately 56.5% for the full year [12][14] - Advertising and marketing expenses were down due to timing, expected to be 14% of sales for the full year, with Q3 anticipated to have the highest spend rate [13][14] Q&A Session Summary Question: Follow-up on Clear Eyes supply and shelf space - Management confirmed that supply chain improvements are expected to benefit Q3 and Q4, but acknowledged a reduction in market share due to supply constraints [21][23] Question: Cold and cough season expectations - Management indicated that the cold and flu category is not a significant revenue driver, and it is too early to predict performance for the upcoming season [25] Question: Retailer inventories health - Retail inventories have been steady, with no significant impacts from performance issues, aside from e-commerce order patterns [27] Question: Women's health performance - Women's health category experienced noise in order patterns, but overall performance remains positive over the trailing twelve months [29][46] Question: Macro environment impact - Management noted that while consumer trends are slowing, their needs-based products are somewhat insulated from broader economic pressures [33][34] Question: Capital allocation and M&A strategy - The company remains focused on M&A opportunities while also prioritizing share repurchases, with a disciplined approach to capital allocation [37][39] Question: Clear Eyes marketing investment post-supply improvement - Future marketing investments will be evaluated based on opportunities, with no immediate increase in overall A&M spending anticipated [65][67] Question: Private label competition - No significant changes in market share or impact from private label competition were reported [68]

Q2 FY26 Performance - Quarterly revenue reached $274.1 million, exceeding forecasts due to Clear Eyes supply timing and retail order timing[11] - Gross Margin was 55.3%, consistent with the prior year[11] - Adjusted Diluted EPS was $1.07, surpassing expectations[11] - Free Cash Flow year-to-date amounted to $134 million, a 10% increase compared to the previous year[11] Financial Results - Revenue decreased by 3.3% year-over-year, excluding foreign currency impacts[20] - EBITDA totaled $86.8 million, compared to $91.9 million in the prior year[20] - Adjusted Diluted EPS decreased by 1.8% year-over-year[20] FY26 Outlook - The company anticipates revenues between $1,100 million and $1,115 million[29] - Organic revenue is expected to decline by approximately 1.5% to 3.0%[29] - Adjusted Diluted EPS is projected to be between $4.54 and $4.58[29] - Free Cash Flow is expected to be $245 million or higher[29]

Core Insights - Prestige Consumer Healthcare (PBH) reported quarterly earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of $0.97 per share, but down from $1.09 per share a year ago, indicating an earnings surprise of +10.31% [1] - The company generated revenues of $274.11 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 6.87%, although this is a decrease from $283.79 million in the same quarter last year [2] - Prestige Consumer Healthcare has underperformed the market, with shares down approximately 23.4% year-to-date compared to the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.23 on revenues of $294.9 million, and for the current fiscal year, it is $4.51 on revenues of $1.1 billion [7] - The estimate revisions trend for Prestige Consumer Healthcare was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Medical - Products industry, to which Prestige Consumer Healthcare belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]