The chart below shows how PBH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PBH sees a -1.67% change in stock price 10 days leading up to the earnings, and a -1.91% change 10 days following the report. On the earnings day itself, the stock moves by +1.40%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Free Cash Flow Growth: 1. Strong Free Cash Flow: Generated $68 million in free cash flow for Q2, reflecting double-digit growth compared to the prior year, supporting capital deployment for shareholder value enhancement.
Debt Reduction Strategy: 2. Debt Reduction: Reduced debt by $40 million in Q2, resulting in a leverage ratio decline to 2.7x, while continuing to repurchase shares opportunistically.
International Revenue Increase: 3. International Segment Growth: Achieved a 4.8% increase in International segment revenues for the first half of fiscal '25, driven by strong performance from the Hydralyte brand.
Consistent Gross Margin Performance: 4. Stable Gross Margin: Maintained a gross margin of 55.1% for the first half of fiscal '25, with expectations of approximately 56% for the full year, supported by pricing actions and cost savings.
Earnings Per Share Increase: 5. Earnings Per Share Growth: Reported EPS of $1.09 for Q2, a slight increase from the prior year, driven by effective capital allocation and improved interest expense.
Negative
Q2 Revenue Decline: Q2 revenue of $283.8 million declined 90 basis points from $286.3 million in the prior year, primarily due to Clear Eyes supply chain limitations and cough and cold ordering patterns.
Revenue Decline Overview: For the first 6 months of fiscal '25, revenues decreased 2.5% organically versus the prior year, with North America segment revenues decreasing 3.7%.
Gross Margin Decline: Total company gross margin of 55.1% in the first 6 months was down slightly versus the prior year, attributed to expenses associated with expedited freight for Clear Eyes.
Adjusted EPS Decline: Adjusted EPS of $1.98 compared to $2.13 in the prior year, reflecting the impact of lower Q1 revenues and increased air freight costs.
Increased Marketing Expenses: Advertising and marketing expenses were 14.7% of sales for the first 6 months, indicating a rise in spending as a percentage of sales compared to the prior year.
Prestige Consumer Healthcare Inc (PBH) Q2 2025 Earnings Call Transcript
PBH.N
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