Financial Data and Key Metrics Changes - Q3 revenue was $283 million, slightly better than forecast but down 2.4% from $290.3 million in the prior year, primarily due to lower eye and ear care category sales [5][12] - Adjusted EPS was $1.14, down from $1.22 in the prior year, reflecting lower sales and increased costs [7][12] - Free cash flow was $209 million year to date, up 13% versus the prior year, allowing for stock repurchases and acquisitions [7][18] Business Line Data and Key Metrics Changes - Sales declines were largely due to Clear Eyes supply constraints, impacting the eye care category [12][14] - Strong growth was observed in e-commerce channels, offsetting declines in other categories like analgesics and cough and colds [15][21] - The women's health segment showed volatility, with Monistat performing well while Summer's Eve faced challenges [39] Market Data and Key Metrics Changes - North America segment revenues decreased 4.4%, while international segment revenues decreased 90 basis points [14] - E-commerce consumption grew over 10% in Q3, indicating a shift in consumer purchasing behavior [35] Company Strategy and Development Direction - The company is focused on improving Clear Eyes supply through strategic actions, including acquiring Pillar5 and adding new suppliers [9][10] - A disciplined capital allocation strategy is in place, prioritizing investments in brands, M&A, and share repurchases [19][20] - The company anticipates a revenue forecast of approximately $1.1 billion for fiscal 2026, reflecting consumption momentum in growth channels [21] Management's Comments on Operating Environment and Future Outlook - Management noted heightened business environment uncertainty due to supply chain constraints, high inflation, and geopolitical events [4] - Confidence remains in the core business, with expectations for free cash flow growth for the fiscal year [8][21] - Sequential improvement in Clear Eyes supply is anticipated, contributing to a positive outlook for the next fiscal year [21] Other Important Information - The company experienced a $10 million write-off related to a supplier loan, which was secured by the supplier's assets [12][13] - Adjusted gross margin for the first nine months was 55.7%, up 50 basis points from the prior year [16] Q&A Session Summary Question: Are consumers shifting to other retailers? - Management confirmed a continuation of channel shifts, with consumption patterns adapting to where consumers choose to shop [24][25] Question: When might the headwinds subside? - Management indicated that it is difficult to predict, as volatility has been high, but they are well-positioned to manage through it [26] Question: Update on eye care supply and margins? - Management expects sequential improvement in Clear Eyes supply but noted that restocking will take time; margins are expected to remain stable [33][34] Question: E-commerce growth and penetration? - E-commerce consumption grew over 10% in Q3, with management noting the importance of adapting marketing strategies to connect with consumers [35][36] Question: Capital allocation and stock repurchases? - Management emphasized that investing in brands is the top priority, but they are also evaluating M&A opportunities while repurchasing shares at attractive levels [44][45] Question: Sales outlook for the fourth quarter? - Management explained that the sales guidance reflects order patterns observed in Q3, with consumption remaining strong [50][51] Question: Future M&A focus? - Management indicated that future M&A will primarily focus on brands and long-term brand building value [69]

Prestige Consumer Healthcare (NYSE:PBH) Q3 2026 Earnings call February 05, 2026 08:30 AM ET Speaker1day and thank you for standing by. Welcome to the third quarter, 2026, Prestige Consumer Healthcare Inc. earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your ha ...

Group 1: ClearBridge Investments and Mid Cap Strategy - ClearBridge Mid Cap Strategy underperformed against the Russell Midcap Index, which returned 0.16% during Q4 2025 due to narrow market leadership and sentiment-driven trading [1] - Weakness in information technology and real estate holdings negatively impacted returns, while gains in select consumer discretionary stocks provided partial support [1] - The portfolio management team expressed cautious optimism for the future, citing improving clarity around policy, interest rates, and business investment as potential positive factors for active stock selection [1] Group 2: Corpay Inc. Overview - Corpay Inc. (NYSE:CPAY) is a corporate payments company with a one-month return of 5.66% and a market capitalization of approximately $22.24 billion as of January 27, 2026 [2] - The stock has traded between $252.84 to $400.81 over the last 52 weeks, closing at approximately $317.96 per share [2] Group 3: ClearBridge's Position on Corpay Inc. - ClearBridge Investments exited its position in Corpay Inc. due to emerging stablecoin technologies introducing new uncertainties around its payments business [3] - Corpay Inc. is not among the 30 most popular stocks among hedge funds, with 45 hedge fund portfolios holding the stock at the end of Q3, up from 42 in the previous quarter [3] - ClearBridge believes that certain AI stocks present greater potential for higher returns in a shorter timeframe compared to Corpay Inc. [3]

Core Viewpoint - JetBrains has decided to discontinue the development of its IDE Fleet, which has been in public preview since its launch in 2021, and will focus on a new development environment called Air aimed at agentic development [2][6]. Group 1: JetBrains and Fleet - JetBrains has a comprehensive suite of IDE products primarily based on the IntelliJ core platform, which has been in use since 2001 [4]. - Fleet was intended to be a lightweight, collaborative IDE to compete with Microsoft's Visual Studio Code (VS Code), which has gained popularity for its features [4][5]. - Despite some initial interest, most developers remained loyal to the IntelliJ series due to its robust plugin ecosystem and Fleet's prolonged public testing status [5]. Group 2: Discontinuation of Fleet - JetBrains announced that Fleet will no longer be available for download starting December 22, 2025, as maintaining two IDE product lines was causing user confusion and internal resource dilution [6]. - The company acknowledged that it failed to replace IntelliJ IDEA with Fleet or narrow its focus to a clear, differentiated niche [6]. - Although Fleet is being discontinued, its components will be integrated into other JetBrains IDEs, and the new product Air is an evolution of the Fleet platform [6]. Group 3: Introduction of Air - Air is designed to focus on a new workflow that leverages AI capabilities, allowing developers to delegate significant tasks to agents, which contrasts with traditional IDE workflows [7][8]. - The agentic workflow involves structured task definitions and asynchronous execution, which necessitates a different tool experience than traditional IDEs [8]. - Air is currently in public testing and will support multiple operating systems and cloud execution, enhancing its functionality beyond what Fleet offered [8]. Group 4: Developer Reactions and Market Position - Some developers expressed disappointment over the discontinuation of Fleet, believing it had the potential to compete effectively with VS Code and other emerging tools [10]. - The shift from Fleet to Air reflects a recurring pattern in JetBrains' strategy to adapt to evolving software development paradigms, particularly in the AI programming tool space [11]. - There are concerns about the necessity of creating a new tool rather than enhancing existing IDEs with AI features, raising questions about developer migration to Air [11].

Financial Data and Key Metrics Changes - The company reported a free cash flow of approximately $242 million for the previous year, with an outlook of over $245 million for the current year, indicating a strong financial profile and consistent cash generation [9][48]. - The five-year compound annual growth rates (CAGRs) showed revenue growth of about 3.5%, organic growth of 2.5%, and earnings per share (EPS) growth of nearly 9% [11]. Business Line Data and Key Metrics Changes - The company operates in several categories, with gastrointestinal (GI) being the largest, followed by women's health, eye and ear care, skin care, and analgesics [4][5]. - The company has a diverse portfolio that allows it to manage fluctuations in illness levels effectively, with brands performing variably based on market conditions [6][10]. Market Data and Key Metrics Changes - The e-commerce segment has grown significantly, with online sales increasing from about 4% of total sales five years ago to approximately 16% by the end of the last fiscal year, with two-thirds of that attributed to Amazon [24][25]. - The international business, particularly in Australia, has been growing in the mid-teens, exceeding long-term expectations of mid to high single-digit growth [36]. Company Strategy and Development Direction - The company focuses on investing in niche categories where brands can compete effectively, emphasizing a brand-building playbook that includes understanding consumer insights and agile marketing strategies [2][12]. - The company aims to utilize its strong cash flow for mergers and acquisitions (M&A), share repurchases, and maintaining a low leverage ratio, with a preference for M&A as the primary use of cash [41][42]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged capacity constraints affecting certain brands but expressed confidence in addressing these issues through new supplier agreements and operational adjustments [46][48]. - The company maintains its free cash flow outlook despite adjustments to top-line revenue expectations, indicating resilience in its financial performance [48]. Other Important Information - The company has a disciplined approach to M&A, focusing on acquiring brands with leading positions in niche categories, and has significant acquisition capacity without returning to previous high leverage levels [44][45]. - The company has successfully launched several new products, including Dramamine advanced herbals for kids and Summer's Eve whole body deodorant, which have performed well in their respective markets [31][33]. Q&A Session Summary Question: What are the kind of valuations the company is seeing in the market? - The company has not observed a meaningful shift in valuations for the types of brands it seeks, emphasizing its competitive advantages over private equity in terms of cost of capital and operational sophistication [58][59]. Question: How does the company view the shift in retail channels from traditional drugstores to clubs and retailers? - The company has adapted to channel shifts by developing unique programs for each retail partner and remains committed to supporting brands in the drug channel while also leveraging opportunities in e-commerce and other retail formats [60][62].

Financial Data and Key Metrics Changes - Q1 sales were approximately $250 million, which was below the forecast of $258 million to $260 million, representing a year-over-year decline largely due to supply chain issues in eye care [6][12] - Gross margin expanded by 150 basis points to 56.2%, attributed to ongoing cost savings efforts [8][12] - Diluted EPS was $0.95, up approximately 6% compared to the adjusted prior year, despite the sales miss [9][16] - Free cash flow reached a quarterly record of $78 million, enabling capital deployment to enhance shareholder value [9][17] Business Line Data and Key Metrics Changes - North America segment revenues decreased by 8.4%, while International segment revenues increased by 7.1% year-over-year [13] - The International segment experienced organic sales growth of 7%, driven by broad-based sales growth [14] Market Data and Key Metrics Changes - The company anticipates a full-year revenue of $1.1 billion to $1.115 billion, with organic revenue expected to decline approximately 1.5% to 3% [22] - For Q2, revenues are expected to be approximately $256 million to $259 million, down year-over-year due to supply chain timing and lower retail order patterns [22] Company Strategy and Development Direction - The company announced the acquisition of Pillar Five to secure and expand long-term supply for eye care products, which is expected to improve supply stability in the second half of the year [11][19] - The company maintains confidence in its diverse consumer healthcare portfolio and long-term growth opportunities despite the disappointing start to the year [21] Management Comments on Operating Environment and Future Outlook - Management highlighted heightened business environment uncertainty due to supply chain constraints, high inflation, and geopolitical events [5] - The company expects significant improvement in Clear Eye shipments in the second half of the year, with a focus on recovering lost sales in FY 2027 and beyond [22][29] Other Important Information - The anticipated cost of tariffs for the full year is approximately $5 million, which the company expects to offset through strategic actions [15] - The acquisition of Pillar Five is expected to be funded from cash on hand and will have a minimal impact on the P&L, being approximately neutral to EPS on a normalized basis [19][63] Q&A Session Summary Question: Change in retail order patterns and inventory destocking - Management noted increased order volatility from retailers in July, which is expected to significantly impact Q2 but anticipates a return to normalized order trends in the second half [25][26] Question: Confidence in Clear Eyes supply normalizing - Management expressed confidence in supply normalizing in the back half of the year, with expectations of recovering lost sales in FY 2027 and beyond [29][30] Question: Impact of bringing eye care manufacturing in-house on margins - Management does not expect any meaningful movement in gross margin as a result of the acquisition of Pillar Five, indicating it will be largely neutral to the P&L [37][38] Question: Inventory levels and destocking expectations - Management does not see any meaningful ramp-up of inventory among their largest customers, indicating that inventory levels are not inflated [45][46] Question: Performance of the women's health business - Management remains optimistic about the continued recovery of the Summer's Eve brand, expecting positive performance for the remainder of the year [48] Question: Sustaining international growth - Management is confident in sustaining international growth, expecting a slight softening compared to the first quarter but still in line with long-term growth algorithms [70]

Financial Data and Key Metrics Changes - Q1 sales were approximately $250 million, which was below the forecast of $258 million to $260 million, representing a year-over-year decline largely due to supply chain issues and lower sales in eye care [5][10] - Gross margin expanded by 150 basis points to 56.2%, attributed to cost savings efforts [6][12] - Diluted EPS was $0.95, up approximately 6% from the adjusted prior year, despite the sales miss [7][14] - Free cash flow reached a record $78 million, enabling capital deployment for shareholder value enhancement [7][15] Business Line Data and Key Metrics Changes - North America segment revenues decreased by 8.4%, while International segment revenues increased by 7.1% year-over-year [11][12] - The eye care segment faced significant supply constraints, impacting sales, while other segments like Dramamine and Fleet showed healthy consumption trends [6][12] Market Data and Key Metrics Changes - The International segment experienced organic sales growth of 7%, driven by broad-based sales growth [12] - E-commerce channel saw double-digit year-over-year consumption growth, indicating a long-term trend towards higher online purchasing [12] Company Strategy and Development Direction - The company announced the acquisition of Pillar Five to secure and expand long-term supply for eye care products, which is expected to improve supply stability in the second half of the year [9][17] - The company anticipates revenues for fiscal 2026 to be between $1.1 billion and $1.115 billion, with organic revenue expected to decline approximately 1.5% to 3% [20] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in the start of the year but remains confident in the long-term growth opportunities of their consumer healthcare portfolio [19] - The company expects significant improvement in Clear Eye shipments in the second half of the year, despite current supply chain challenges [20][29] Other Important Information - The company maintained a leverage ratio of approximately 2.4 times and repurchased over 400,000 shares in Q1 [7][15] - The anticipated cost of tariffs for the full year is approximately $5 million, which the company expects to offset through strategic actions [13] Q&A Session Summary Question: Change in retail order patterns and inventory destocking - Management noted increased order volatility from retailers in July, disconnected from consistent consumption levels, impacting Q2 significantly [23][24] Question: Confidence in supply normalizing for Clear Eyes - Management expressed confidence in supply normalizing in the back half of the year, with new suppliers and a high-speed line expected to contribute [26][29] Question: Impact of bringing eye care manufacturing in-house on margins - Management indicated no meaningful movement in gross margin as a result of bringing manufacturing in-house, expecting it to be largely neutral to the P&L [36][39] Question: Outlook for cough and cold season - Management maintained the initial guidance for a modest decline in the cough and cold category, too early to tell at this point [42] Question: Inventory levels within segments - Management reported no meaningful ramp-up of inventory, indicating that current order patterns are disconnected from consumption [44] Question: Performance of Summer's Eve brand - Management expressed confidence in the continued positive momentum of the Summer's Eve brand for the remainder of the year [46] Question: International segment growth sustainability - Management expects to sustain international growth, projecting a long-term algorithm of over 5% for the segment [68]

Core Insights - Lithia Motors reported revenue of $9.58 billion for the quarter ended June 2025, reflecting a 3.8% increase year-over-year and a surprise of +0.52% over the Zacks Consensus Estimate of $9.53 billion [1] - Earnings per share (EPS) reached $10.24, compared to $7.87 in the same quarter last year, resulting in an EPS surprise of +4.7% against the consensus estimate of $9.78 [1] Financial Performance Metrics - New vehicle retail unit sales were 94,144, below the three-analyst average estimate of 98,009 [4] - Used vehicle retail unit sales totaled 109,053, also below the three-analyst average estimate of 112,524 [4] - The average selling price for new vehicles was $47,782, compared to the average estimate of $48,329.15 [4] - The average selling price for used vehicles was $28,379, exceeding the three-analyst average estimate of $27,338.08 [4] - Fleet and other revenue was $209.5 million, below the five-analyst average estimate of $241.66 million, representing a year-over-year decline of -13.1% [4] - Finance and insurance revenue was $373.8 million, slightly below the average estimate of $388.18 million, but showed a year-over-year increase of +3.6% [4] - Used vehicle wholesale revenue reached $383.1 million, surpassing the five-analyst average estimate of $338.23 million, marking a +32.3% year-over-year increase [4] - Used vehicle retail revenue was $3.09 billion, matching the five-analyst average estimate, with a year-over-year increase of +3.6% [4] - Service, body and parts/aftersales revenue was $1.02 billion, aligning with the average estimate [4] - New vehicle revenue was $4.5 billion, below the five-analyst average estimate of $4.78 billion, reflecting a +2.2% year-over-year increase [4] - Same store operating metrics for service, body and parts/aftersales revenue were $998 million, exceeding the two-analyst average estimate of $903.52 million, with a +28.3% year-over-year change [4] - Same store operating metrics for finance and insurance revenue were $366 million, slightly below the two-analyst average estimate of $368.42 million, showing a +16.7% year-over-year increase [4] Stock Performance - Lithia Motors' shares have returned -9.1% over the past month, contrasting with the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Prestige Consumer Healthcare (PBH) FY Conference Summary Company Overview - Prestige Consumer Healthcare sells and distributes over-the-counter health care products in the US, Canada, and certain international markets, with well-known brands like Dramamine, Clear Eyes, Dentech, and Ludens [2][4] Core Strategy and Financial Performance - The company's strategy focuses on building a consumer health care portfolio with leading brands in niche categories, which has remained unchanged over time [4][5] - Fiscal year 2025 ended with record sales and earnings per share (EPS), alongside significant cash flow performance, resulting in the lowest leverage in the company's history [7] - The company anticipates generating approximately $1 billion in free cash flow over the next four years [7][54] Consumer Behavior and Market Dynamics - Consumers are becoming more thoughtful in their shopping habits, seeking better value propositions without switching to different products [9][10] - There have been no significant changes in the competitive landscape, with no new entrants affecting the categories in which Prestige competes [12][13] Tariffs and Pricing Strategy - The company expects a cost impact of approximately $15 million for fiscal year 2026 due to tariffs, with a total annualized impact of around $20 million [16] - Prestige is well-positioned to navigate the tariff environment due to a diverse portfolio and a largely domestic supply base [19][20] Product Portfolio Insights - Clear Eyes is expected to recover from supply chain challenges over the next couple of years, with efforts to expand capacity and bring on new suppliers [24][25] - Women's health products, particularly Monistat and Summer's Eve, are showing signs of recovery, with Monistat stabilizing and Summer's Eve experiencing year-over-year sales growth for the first time in three years [28][30] - The international segment is projected to grow in the mid-single digits, driven by strong brand performance in Australia and surrounding regions [31][33] E-commerce and Marketing Strategy - E-commerce has been growing at over 10% annually, with a focus on leveraging online platforms as marketing tools to connect with new shoppers [34][36] Financial Outlook and Growth Targets - The company targets 2% to 3% organic sales growth and 6% to 8% EPS growth in the long term, supported by a diverse portfolio and stable profit margins [46][48] - Gross margin is expected to improve to approximately 56.5% for fiscal year 2026, with ongoing cost-saving initiatives [51][52] Capital Allocation and M&A Strategy - Capital allocation priorities include organic growth investments, M&A opportunities, and share repurchases, with a focus on maintaining leverage below three times [54][56] - The company continues to see consistent M&A opportunities, particularly in the consumer health care space, with a preference for acquisitions in the $200 million to $500 million range [62][65] Conclusion - Prestige Consumer Healthcare is well-positioned for long-term growth, with a strong portfolio, effective strategies to navigate market challenges, and a clear focus on capital allocation and M&A opportunities [66]

Core Insights - Prestige Consumer Healthcare's long-term growth strategy focuses on building strong brands and expanding its brand portfolio through both organic growth and acquisitions [1][10] - The company has seen significant momentum in e-commerce, with sales growing at a double-digit rate and e-commerce now representing a high-teens percentage of total sales, up from approximately 15% the previous year [7][8] - Despite solid revenue growth forecasts, the company faces challenges from long-term debt of $1.01 billion and currency fluctuations that could impact profitability [8][11][12] Financial Performance - Prestige Consumer's stock has increased by 30.9% over the past year, outperforming the industry and S&P 500, both of which grew by 9.1% [2] - The company has a market capitalization of $4.23 billion and an earnings yield of 5.6%, significantly higher than the industry's 0.6% yield [2] - The Zacks Consensus Estimate for fiscal 2026 earnings per share is $4.77, with revenues projected at $1.15 billion, indicating a 0.9% increase from the previous year [13] Brand and Product Strategy - The company emphasizes targeted brand-building and innovation, particularly in niche consumer healthcare categories, which supports its market share leadership [4] - Recent product innovations include new flavors for Hydralyte and the Monistat Maintain Kit, aimed at enhancing consumer engagement [5][10] - Acquisitions, such as TheraTears and Hydralyte, have diversified the product portfolio, providing multiple growth sources and minimizing the impact of category-specific slowdowns [10] E-Commerce and Digital Strategy - E-commerce sales growth is driven by brand-specific digital strategies, including website refreshes and engaging content, which enhance consumer education and retention [7][9] - The company is expanding its digital channels internationally while maintaining strong profitability across all sales channels [8][9] Debt and Currency Risks - Prestige Consumer's long-term debt of $1.01 billion and a cash position of $98 million indicate a moderately leveraged debt-to-capital ratio of 35.6% [11] - Currency fluctuations pose a risk, as approximately 15.6% of revenues come from international markets, potentially affecting pricing and costs [12]