Prestige Consumer Shares Slide on Weak Outlook, 4Q Underperformance

Dow Jones
May 15
 

By Dean Seal

 

Shares of Prestige Consumer Healthcare fell after the company's annual guidance and latest quarterly results fell short of analyst expectations.

The stock dropped 9% to $47.02 on Thursday, extending its year-to-date loss to 24%.

The distributor of pharmaceuticals and consumer products is projecting revenue of $1.1 billion to $1.12 billion for the fiscal year that started April 1, with organic revenue seen rising 1% to 3%. Analysts polled by FactSet had been forecasting $1.16 billion.

Adjusted earnings should hit $4.42 to $4.51 share, it said. That's below the prior per-share target of $4.79 set by analysts.

The company's results for the fiscal fourth quarter, which ended March 31, were disappointing too. Revenue fell 5% to $281.6 million, below analyst estimates for $293.6 million. Prestige said its limited ability to supply demand for its Clear Eyes eye drops was a factor, along with a headwind from accelerated order timing in the prior quarter.

Prestige grew its profit to $53.9 million, or $1.13 a share, from $50.1 million, or $1 a share, in the same quarter a year earlier. But adjusted earnings of $1.23 a share missed analyst views for $1.39 a share.

The company's gross profit margin was lower as the cost of sales climbed despite actual sales falling. The margin was lower on an adjusted basis as well, owing to acquired facility remediation and idle capacity costs that weren't a factor a year ago.

Oppenheimer analysts downgraded the company's stock to a perform rating from outperform.

 

Write to Dean Seal at dean.seal@wsj.com

 

(END) Dow Jones Newswires

May 14, 2026 14:17 ET (18:17 GMT)

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