Prestige Consumer Healthcare Inc. Reports Fiscal 2026 First Quarter Results

Core Insights - Prestige Consumer Healthcare Inc. reported a revenue of $249.5 million for the first quarter of fiscal 2026, a decrease of 6.6% from $267.1 million in the same period last year, primarily due to supply constraints in the Clear Eyes product line [3][10] - The company announced an acquisition of Pillar5 Pharma to enhance its eye care production capacity, which is expected to be neutral to earnings per share (EPS) and close in the third quarter of fiscal 2026 [10][11] - The updated fiscal 2026 revenue outlook is revised to $1,100 to $1,115 million, with diluted EPS expected to be between $4.50 and $4.58 [14][16] Financial Performance - Reported net income for the first quarter of fiscal 2026 was $47.5 million, down from $49.1 million in the prior year, with diluted EPS of $0.95 compared to $0.98 in the same period last year [4][10] - Free cash flow for the first quarter increased to $78.2 million from $53.6 million in the prior year, attributed to improved working capital timing and lower interest expenses [6][10] - The company's net cash provided by operating activities was $79.0 million, compared to $54.8 million in the prior year [6][10] Segment Performance - North American OTC Healthcare segment revenues decreased to $212.6 million from $232.3 million year-over-year, primarily due to lower sales in the Eye & Ear Care category [8][29] - International OTC Healthcare segment revenues increased by 6.1% to $37.0 million, driven by broad-based growth across various geographies [9][29] Strategic Initiatives - The acquisition of Pillar5 Pharma is part of a long-term strategy to secure supply and enhance production capacity for eye care products, addressing current supply chain challenges [10][13] - The company aims to leverage its diverse portfolio and strong financial profile to drive long-term shareholder value [2][14]