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Prestige Consumer (PBH) to Post Q2 Earnings: Things to Note

Prestige Consumer's (PBH) performance in the fiscal second quarter is likely to have gained from strong brand offerings, especially in healthcare, as well as growing e-commerce sales.

This story originally appeared on Zacks

Prestige Consumer Healthcare Inc. PBH is likely to register both top- and bottom-line growth when it reports second-quarter fiscal 2021 earnings on Nov 4, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $261.3 million, which indicates a rise of 10.1% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for earnings is currently pegged at 99 cents per share, indicating a rise of 26.9% from the year-ago quarter’s reported figure. The consensus mark has been steady over the past 30 days. The provider of healthcare and household cleaning products has a trailing four-quarter earnings surprise of 11.5%, on average.

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Key Aspects to Note

Prestige Consumer’s performance in the fiscal second quarter is likely to have benefited from the company’s efficient brand-building strategies and market share gains across certain categories and brands.

The company continuously gains from a rise in sales of brands that are linked with consumers’ enhanced outdoor movement. It prides on having a strong portfolio of healthcare brands. Management’s growth initiatives are also inclined toward strengthening its presence in healthcare.

Prestige Consumer has also been benefiting from strong e-commerce operations for a while as more consumers are shifting to the online mode of shopping. In this context, the company’s multi-year e-commerce investments are yielding results.

However, we cannot ignore the headwinds emerging from operating amid the pandemic. This includes adverse impacts stemming from supply-chain delays, labor shortages and scarcity of raw materials. Any rise in input costs is also a concern. On its last earnings call, management had anticipated higher general and administrative expenses for the quarter in review.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Prestige Consumer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Prestige Consumer currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks With Favorable Combination

Here are some companies you may want to consider as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:

The Estee Lauder Companies Inc. EL currently has an Earnings ESP of +0.38% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Corteva, Inc. CTVA currently has an Earnings ESP of +7.89% and a Zacks Rank of 3.

Tyson Foods, Inc. TSN currently has an Earnings ESP of +19.13% and is Zacks #3 Ranked.

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