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Prestige Consumer Healthcare Inc. (NYSE:PBH) Released Earnings Last Week And Analysts Lifted Their Price Target To US$85.29

Simply Wall St ·  Nov 10, 2024 20:14

It's been a good week for Prestige Consumer Healthcare Inc. (NYSE:PBH) shareholders, because the company has just released its latest second-quarter results, and the shares gained 8.5% to US$80.37. Results were roughly in line with estimates, with revenues of US$284m and statutory earnings per share of US$1.09. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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NYSE:PBH Earnings and Revenue Growth November 10th 2024

Following last week's earnings report, Prestige Consumer Healthcare's eight analysts are forecasting 2025 revenues to be US$1.13b, approximately in line with the last 12 months. Per-share earnings are expected to increase 7.6% to US$4.49. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.13b and earnings per share (EPS) of US$4.48 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 7.4% to US$85.29despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Prestige Consumer Healthcare's earnings by assigning a price premium. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Prestige Consumer Healthcare analyst has a price target of US$95.00 per share, while the most pessimistic values it at US$70.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 3.9% growth on an annualised basis. That is in line with its 4.3% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 10% annually. So although Prestige Consumer Healthcare is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Prestige Consumer Healthcare's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Prestige Consumer Healthcare going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Prestige Consumer Healthcare you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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