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How Prestige Consumer (PBH) Looks Just Ahead of Q2 Earnings

Prestige Consumer Healthcare Inc. PBH is likely to register a top-line decline when it reports second-quarter fiscal 2021 numbers on Nov 5, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $227.4 million, which indicates a decline of 4.5% from the year-ago quarter’s reported figure. The rate of sales decline is likely to widen on a sequential basis. The company had witnessed a decline of 1.2% in the last reported quarter.

Nevertheless, Prestige Consumer is likely to post an increase in the bottom line when it releases second-quarter results. The Zacks Consensus Estimate for quarterly earnings has remained stable at 72 cents per share over the past 30 days. The consensus estimate suggests an increase of 5.9% from earnings of 68 cents reported in the year-ago quarter.

Aspects That May Impact Q2 Metrics

Prestige Consumer is witnessing lower consumption patterns across certain categories, thanks to the ongoing coronavirus pandemic. This is likely to have adversely the company’s top line, during the quarter under review.  In fact, management in its last earnings call had guided a low to mid-single-digits decline in consumption for the second quarter.

Also, any adverse movement in currency exchange rates may have put pressure on the company’s performance during the quarter under review. Nonetheless, the company has been gaining on its strong e-commerce operations.

Apart from this, Prestige Consumer has been undertaking robust cost-management policies. Markedly, the company has been working toward reducing advertising and promotional expenditures. Moreover, transitioning to new third-party logistics provider is likely to have contributed favorably.

Prestige Consumer Healthcare Inc. Price, Consensus and EPS Surprise

What the Zacks Model Unveils

Our proven model doesn’t 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 carries a Zacks Rank #3 and an Earnings ESP of +0.00%.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.

Nu Skin Enterprises, Inc. NUS currently has an Earnings ESP of +3.54% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Grocery Outlet Holding Corp. GO currently has an Earnings ESP of +10.76% and a Zacks Rank #2.

Tyson Foods, Inc. TSN has an Earnings ESP of +9.57% and a Zacks Rank #3, at present.

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Tyson Foods, Inc. (TSN): Free Stock Analysis Report
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