Stock Analysis

Prestige Consumer Healthcare Inc. (NYSE:PBH) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

NYSE:PBH
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Shareholders of Prestige Consumer Healthcare Inc. (NYSE:PBH) will be pleased this week, given that the stock price is up 11% to US$68.67 following its latest quarterly results. It was a credible result overall, with revenues of US$283m and statutory earnings per share of US$1.06 both in line with analyst estimates, showing that Prestige Consumer Healthcare is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Prestige Consumer Healthcare

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NYSE:PBH Earnings and Revenue Growth February 11th 2024

Taking into account the latest results, the most recent consensus for Prestige Consumer Healthcare from seven analysts is for revenues of US$1.16b in 2025. If met, it would imply a satisfactory 2.4% increase on its revenue over the past 12 months. Prestige Consumer Healthcare is also expected to turn profitable, with statutory earnings of US$4.63 per share. In the lead-up to this report, the analysts had been modelling revenues of US$1.16b and earnings per share (EPS) of US$4.60 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$74.20. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Prestige Consumer Healthcare analyst has a price target of US$84.00 per share, while the most pessimistic values it at US$65.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Prestige Consumer Healthcare's revenue growth is expected to slow, with the forecast 1.9% annualised growth rate until the end of 2025 being well below the historical 4.2% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that Prestige Consumer Healthcare is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Prestige Consumer Healthcare's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Prestige Consumer Healthcare going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Prestige Consumer Healthcare .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.