Prestige Brands Holdings
The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Prestige Brands Holdings beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins grew, net margins improved.
Prestige Brands Holdings reported revenue of $106.3 million. The three analysts polled by S&P Capital IQ wanted to see revenue of $104.1 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $90.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.25. The five earnings estimates compiled by S&P Capital IQ forecast $0.25 per share on the same basis. GAAP EPS of $0.19 for Q3 were 375% higher than the prior-year quarter's $0.04 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.9%, 50 basis points worse than the prior-year quarter. Operating margin was 26.9%, 100 basis points better than the prior-year quarter. Net margin was 9.0%, 660 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $127.4 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $434.4 million. The average EPS estimate is $0.96.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 162 members out of 173 rating the stock outperform, and 11 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Prestige Brands Holdings a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Prestige Brands Holdings is outperform, with an average price target of $14.25.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.