Results: Prestige Consumer Healthcare Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

It's been a pretty great week for Prestige Consumer Healthcare Inc. (NYSE:PBH) shareholders, with its shares surging 13% to US$87.00 in the week since its latest third-quarter results. The result was positive overall - although revenues of US$290m were in line with what the analysts predicted, Prestige Consumer Healthcare surprised by delivering a statutory profit of US$1.22 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Prestige Consumer Healthcare

Taking into account the latest results, the most recent consensus for Prestige Consumer Healthcare from eight analysts is for revenues of US$1.18b in 2026. If met, it would imply an okay 5.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 17% to US$5.03. In the lead-up to this report, the analysts had been modelling revenues of US$1.16b and earnings per share (EPS) of US$4.76 in 2026. So the consensus seems to have become somewhat more optimistic on Prestige Consumer Healthcare's earnings potential following these results.

The consensus price target was unchanged at US$88.29, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Prestige Consumer Healthcare at US$104 per share, while the most bearish prices it at US$75.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Prestige Consumer Healthcare shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Prestige Consumer Healthcare'shistorical trends, as the 4.4% annualised revenue growth to the end of 2026 is roughly in line with the 4.1% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 8.7% annually. So although Prestige Consumer Healthcare is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Prestige Consumer Healthcare's earnings potential next year. 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 2027, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs 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.