bunch of white oval medication tablets and white medication capsules

Q2 Earnings Preview for Prestige Consumer Healthcare (NYSE:PBH)

in EARNINGS/INVESTING IDEAS by

Prestige Consumer Healthcare Inc. (NYSE:PBH) is scheduled to report Q2 earnings results before markets open for trading on November 5, 2020.

The company is expected to report earnings of $0.72/share on revenue of $227.5 million. The consensus earnings per share (EPS) of $0.72/share is based on a poll of 7 analysts and represents a growth in eps of 5.5% over the same quarter last year, when the company reported earnings of $0.68/share.

The revenue forecast of $227.5 million based on a poll of 7 analysts implies a year-over-year (YoY) decline in revenue of −4.4%. Last year the company reported $238.1 million in revenue for the quarter.

Expected to report EPS growth of 5.5% for Q2, 2021
Metric Expected Prior Year YoY Change
Revenue $227.49 $238.07 −4.4%
EPS $0.72 $0.68 5.5%

Earnings Call Trends

Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.

What are your expectations from Prestige Consumer Healthcare Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q1, 2021 $0.70 $0.86 22.9% Beat
Q4, 2020 $0.74 $0.82 11.5% Beat
Q3, 2020 $0.75 $0.81 8.0% Beat
Q2, 2020 $0.66 $0.68 3.7% Beat
Q1, 2020 $0.64 $0.65 2.2% Beat
Q4, 2019 $0.70 $0.72 2.3% Beat
Q3, 2019 $0.72 $0.73 1.1% Beat
Q2, 2019 $0.63 $0.65 3.5% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 2.7%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 6, 2020 $38.88 $39.94 2.7% Increase
May 7, 2020 $39.55 $40.24 1.7% Increase
February 6, 2020 $41.50 $45.96 10.7% Increase
October 31, 2019 $34.90 $36.93 5.8% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.75, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.75 implies a 0.3% chance of earnings manipulation.

Fundamentals And Technical Analysis

Prestige Consumer Healthcare Inc. is currently trading at $33.03/share, down −0.7% for the day. The company is trading at approximately 71.6% of its 52-week high of $46.12/share. The company’s stock price is down −17.3% since the last earnings report and down −3.3% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 34.35 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:PBH Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 10.90 and a forward P/E multiple of 10.29.

Prestige Consumer Healthcare Inc.’s current share price also implies a price-to-book (P/B) multiple of 1.35. The following table summarizes some other key fundamental ratios:

Data as of November 1, 2020
Metric Value
Last Reported Fiscal Period Key FY2021.Q1
Period End Date June 30, 2020
Stock Price (Current) $33.03
P/E Ratio 10.9x
P/E Ratio (Fwd) 10.3x
PEG Ratio 0.0
Total Debt / Total Capital 49.9%
Levered Free Cash Flow $224.3 million
EV / EBITDA 9.6x

Finbox

Prestige Consumer Healthcare Inc. is a small-cap stock with a market capitalization of $1.658 billion and a total enterprise value of $3.261 billion. The company operates in the Healthcare sector and the Pharmaceuticals industry.

Prestige Consumer Healthcare Inc., together with its subsidiaries, develops, manufactures, markets, distributes, and sells over-the-counter (OTC) healthcare products in North America, Australia, and internationally. It operates in two segments, North American OTC Healthcare and International OTC Healthcare. The company offers BC/Goody’s analgesic powders, Boudreaux’s Butt Paste baby ointments, Chloraseptic sore throat liquids/lozenges, Clear Eyes for eye allergies/redness relief, Compound W wart removals, Debrox ear wax removals, DenTek for PEG oral care, and Dramamine for motion sickness relief. It also provides Fleet adult enemas/suppositories, Gaviscon upset stomach remedies, Luden’s cough drops, Monistat vaginal anti-fungal, Nix lice/parasite treatments, Summer’s Eve feminine hygiene, Fess nasal saline spray, and Hydralyte for oral rehydration products. The company sells through mass merchandisers; and drug, food, dollar, convenience, and club stores, as well as e-commerce channels. The company was formerly known as Prestige Brands Holdings, Inc. and changed its name to Prestige Consumer Healthcare Inc. in August 2018. Prestige Consumer Healthcare Inc. was founded in 1996 and is headquartered in Tarrytown, New York.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

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