PBH Q4 Earnings & Revenues Miss Estimates, Margins Down

Prestige Consumer Healthcare Inc. PBH posted fourth-quarter fiscal 2026 adjusted diluted earnings per share (EPS) of $1.23, down 6.8% from $1.32 a year ago. The figure missed the Zacks Consensus Estimate by 11.7%.

GAAP EPS was $1.13 compared with $1.00 a year ago. 

For fiscal 2026, adjusted EPS was $4.38 compared with $4.52 in the previous year. 

PBH’s Revenues

Quarterly revenues totaled $281.6 million, down 5.0% year over year. The figure fell short of the Zacks Consensus Estimate by 4.3%. 

For fiscal 2026, the company generated total revenues of $1.09 billion, down 4.3% from the prior-year figure.

PBH’s Segmental Performance in Detail

North American OTC Healthcare’s revenues amounted to $234.5 million for the fiscal fourth quarter, down 5.8% year over year. The decrease was primarily due to lower Eye & Ear Care category sales caused by the limited ability to meet demand for Clear Eyes.

International OTC Healthcare’s revenues totaled $47.1 million in the fiscal fourth quarter, down 1% year over year. The weaker revenue performance can be attributed to shipping disruptions in the Middle East and lower sales in the Eye & Ear Care category.

PBH’s Margin Performance 

The gross profit in the fiscal fourth quarter fell 13.9% year over year to $146.3 million. The gross margin contracted 539 basis points (bps) year over year to 51.9% due to a 6.5% increase in the cost of sales (excluding depreciation). 

During the quarter, advertising and marketing expenses declined 5.2% to $35.1 million, while general and administrative expenses increased 11.9% to $30.3 million. Operating income, excluding depreciation and amortization, totaled $80.9 million, reflecting a 13.4% decrease. The adjusted operating margin contracted 279 bps to 28.7%. 

PBH’s Financial Details

Prestige Consumer exited the fiscal fourth quarter of 2026 with cash and cash equivalents of $63.9 million compared with $97.9 million a year ago. 

Prestige Consumer generated net cash provided by operating activities of $257.6 million in fiscal 2026, up from $251.5 million in the prior year. 

PBH Sets Fiscal 2027 Targets

PBH revealed its fiscal 2027 outlook, projecting revenues in the range of $1.10-$1.12 billion and organic revenue growth in the band of 1-3%. The Zacks Consensus Estimate for revenues is currently pegged at $1.10 billion.

The company expects adjusted diluted earnings per share between $4.42 and $4.51. The Zacks Consensus Estimate was pegged at $4.54 for the metric.

Prestige Consumer Healthcare Inc. Price, Consensus and EPS Surprise

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

Our Take

PBH exited the fiscal fourth quarter of 2026 with weaker-than-expected results, with both earnings and revenues missing estimates. The revenue decline was due to softer Eye & Ear Care results as the company faced a limited ability to meet demand for Clear Eyes. PBH also noted that shipping disruptions in the Middle East affected its quarterly performance, adding to operational pressures late in the period.

Continued strength in Prestige Consumer Healthcare’s Gastrointestinal portfolio, with solid growth from Fleet, Dramamine, and Hydralyte, helped offset the impact of eye care supply constraints. This also supported management’s view that the company’s diversified, category-spanning portfolio can perform through uneven consumer demand.

Prestige Consumer announced an agreement to acquire LaCorium Health for approximately $150 million in cash. The transaction is expected to be closed in the second quarter of fiscal 2027, subject to customary closing conditions.

The contraction of the operating margin is also discouraging. 

PBH’s Zacks Rank and Key Picks 

Prestige Consumer Health currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the broader medical space are Alcon ALC, Intuitive Surgical ISRG and Phibro Animal Health PAHC.

Alcon, currently carrying a Zacks Rank #2 (Buy), reported a fourth-quarter 2025 EPS of 78 cents, which missed the Zacks Consensus Estimate by 0.8%. Revenues of $2.70 billion missed the Zacks Consensus Estimate by 0.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ALC has an earnings yield of 2.5% compared to the industry’s negative 1.6% yield. The company’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 1.11%.

Intuitive Surgical, carrying a Zacks Rank #2 at present, posted a first-quarter 2026 adjusted EPS of $2.50, which exceeded the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion topped the Zacks Consensus Estimate by 6.2%.

ISRG has an earnings yield of 2.1% in contrast to the industry’s negative yield of 0.9%. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.

Phibro Animal Health, carrying a Zacks Rank #2 at present, posted a second-quarter fiscal 2026 adjusted EPS of 87 cents, which outpaced the Zacks Consensus Estimate by 27.01%. Revenues of $373.9 million outperformed the Zacks Consensus Estimate by 4.72%.

PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 20.15%.

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

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