Prestige Brands Earnings Preview

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Prestige Brands Holdings (NYS: PBH) only managed to meet estimates last quarter, but investors hope that it will surpass expectations this quarter. The company will unveil its latest earnings on Thursday, Nov. 10. Prestige Brands sells well-recognized, brand name, over-the-counter healthcare, household cleaning, and personal care products in a global marketplace.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Prestige Brands with three of five analysts rating it hold. While analysts still rate the stock a hold, they are a little more optimistic about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $104.7 million in revenue this quarter. That would represent a rise of 33.7% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.26 per share. Estimates range from $0.25 to $0.28.

What our community says:
CAPS All-Stars are solidly behind the stock with 95.9% giving it an "outperform" rating. The community at large agrees with the All-Stars with 93.7% awarding it a rating of "outperform." Fools are gung-ho about Prestige Brands, though the message boards have been quiet lately with only 46 posts in the past 30 days. Prestige Brands has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
Prestige Brands' profit has risen year over year by an average of 20.1% over the past five quarters. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters. 

QuarterQ1Q4Q3Q2
Gross Margin52.3%48.1%48.6%54.4%
Operating Margin28.6%19.3%14.4%30.4%
Net Margin15.5%6.7%2.4%14.1%
For all our Prestige Brands-specific analysis, including earnings and beyond, add Prestige Brands Holdings to My Watchlist.

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