Prestige Consumer Stock Up 8% Since Q4 Earnings Beat, Margin Increase

Prestige Consumer Healthcare Inc. PBH recorded fourth-quarter fiscal 2025 earnings per share (EPS) of $1.32, which exceeded the Zacks Consensus Estimate by 1.5%. The bottom line improved 29.4% from the year-ago reported figure.

GAAP EPS for the quarter was $1.00, a 2% improvement from the year-ago earnings.

For the full year, adjusted EPS was $4.52, a 7.4% improvement from fiscal 2024.

Since the earnings release, shares of PBH have risen more than 8%.

Total revenues for the fiscal fourth quarter increased 7% year over year to $296.5 million and exceeded the Zacks Consensus Estimate by 2.6%. The quarter’s performance reflected broad-based growth across both North America and International business segments.

Full-year revenues were $1.14 billion, up 1.1% from the fiscal 2024 level.

Segments in Detail

The company conducts its operations through two reportable segments — North American OTC Healthcare and International OTC Healthcare.

Revenues in the North American OTC Healthcare segment totaled $248.9 million in the fiscal fourth quarter, up 7.7% from the year-earlier quarter. Within this, the company reported strong GI and Women’s Health category growth, led by growth of the Summer’s Eve, Dramamine and Fleet brands.

Our model projected the segment’s revenues to be $241.7 million in the fiscal fourth quarter.

Revenues in the International OTC Healthcare segment were $47.6 million, up 3.7% from the year-ago quarter’s figure (up 7.1% at constant exchange rate or CER). The company reported broad-based growth in Australia revenues, led by the Hydralyte brand.

Our model projected the segment’s revenues to be $48 million in the fourth quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Prestige Consumer Healthcare Inc. Price, Consensus and EPS Surprise

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

Margins

Adjusted gross profit in the fiscal fourth quarter rose 11.8% year over year to $172.2 million. Meanwhile, adjusted gross margin expanded 248 basis points (bps) year over year to 58.1% on a 1.1% increase in the cost of sales (excluding depreciation).

During the quarter, advertising and marketing expenses declined 1.4% to $37 million. General and administrative expenses were up 2.2% to $27 million. Adjusted operating income in the quarter under review was $108.1 million, highlighting an increase of 20.1%. Adjusted operating margin expanded 398 bps to 36.5%.

Financial Update

Prestige Consumer exited the fiscal fourth quarter with cash and cash equivalents of $97.9 million compared with $50.9 million recorded at the end of the third quarter of fiscal 2025. Net long-term debt totaled $992.4 million, down from $1.13 billion at the end of the fiscal third quarter.

The cumulative net cash provided by operating activities at the end of the fiscal fourth quarter was $251.5 million compared with $248.9 million in the year-ago period. The cumulative adjusted free cash flow at the end of the fiscal fourth quarter was $243.3 million compared with $239.4 million in the year-ago period.

Guidance

The company has provided its initial fiscal 2026 revenue growth and EPS outlook.

Revenues for the full year are anticipated in the range of $1.140 billion-$1.155 billion. Organic revenue growth for the full year is anticipated to be approximately 1% -2%. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $1.15 billion.

Prestige Consumer expects fiscal 2026 EPS to be approximately $4.70-$4.82. The Zacks Consensus Estimate for fiscal 2026 EPS stands at $4.70.

Free cash flow for the full year is likely to be $245 million or more.

Our Take

PBH exited the fiscal fourth quarter of 2025 with better-than-expected results. The company experienced continued strong international growth, banking on strong sales of the Hydralyte brand, coupled with broad-based growth across nearly all of PBH’s North American categories. GI and Women’s Health categories experienced the largest dollar growth year over year, led by the growth of the Summer’s Eve, Dramamine and Fleet brands. The fiscal 2026 guidance indicates strong improvement from fiscal 2025 and instilled optimism among investors.

Zacks Rank and Other Key Picks

Prestige Consumer currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the broader medical space are AngioDynamics ANGO, Integer Holdings Corporation ITGR and Boston Scientific BSX.

AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a loss of 13 cents. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5%. The company surpassed earnings estimates in each of the trailing four quarters, the average surprise being 70.9%.

Integer Holdings, sporting a Zacks Rank #1 at present, posted first-quarter 2025 adjusted EPS of $1.31, which outpaced the Zacks Consensus Estimate by 3.1%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%.

ITGR has an estimated long-term earnings growth rate of 20.8% compared with the industry’s 14.3%. The company’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 2.8%.

Boston Scientific, currently carrying a Zacks Rank #2, reported first-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion topped the Zacks Consensus Estimate by 2.3%.

BSX has an estimated 2025 earnings growth rate of 15.9% compared with the S&P 500 composite’s 11.9%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.8%.

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This article originally published on Zacks Investment Research (zacks.com).

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