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Is Prestige Consumer Healthcare’s Upbeat Outlook and Buyback Activity Reframing Its Long-Term Story (PBH)?

Simply Wall St·11/11/2025 09:36:05
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  • Prestige Consumer Healthcare recently reported second-quarter results that surpassed analyst expectations, raised its adjusted earnings guidance to the high end of the prior range, and reaffirmed revenue goals for fiscal 2026 despite supply constraints affecting the Clear Eyes product line.
  • The company also repurchased approximately 1.1 million shares last quarter and remains focused on disciplined use of strong free cash flow, including potential M&A to drive long-term growth and value.
  • We'll now explore how Prestige's guidance upgrade and active capital allocation may impact the company's investment narrative going forward.

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Prestige Consumer Healthcare Investment Narrative Recap

To own Prestige Consumer Healthcare, an investor needs to believe the company can recover from supply chain disruptions, particularly with the Clear Eyes product line, and capitalize on consistent free cash flow and disciplined capital allocation. The latest results, beating earnings expectations and raising adjusted EPS guidance, suggest some stabilization, but they do not materially change the near-term catalyst: recovery of product supply, nor do they remove the primary risk of prolonged supply challenges or delayed normalization in market share. Among management’s recent moves, the decision to raise adjusted EPS guidance to the upper end of the previous range stands out. This refinement to profit expectations, despite lower year-over-year sales, reflects confidence in operations and supports the case for supply improvement as the most important catalyst now. EBIT performance, ongoing share buybacks, and completion of the Pillar5 acquisition remain pivotal as the company steers through its supply issues. On the other hand, investors should still be mindful of the potential for further disruptions in key brand supply chains if recovery proves slower than expected...

Read the full narrative on Prestige Consumer Healthcare (it's free!)

Prestige Consumer Healthcare's outlook projects $1.2 billion in revenue and $236.2 million in earnings by 2028. This is based on a 1.0% annual revenue growth rate and a $23.2 million increase in earnings from the current $213.0 million.

Uncover how Prestige Consumer Healthcare's forecasts yield a $80.17 fair value, a 33% upside to its current price.

Exploring Other Perspectives

PBH Earnings & Revenue Growth as at Nov 2025
PBH Earnings & Revenue Growth as at Nov 2025

All one of the Simply Wall St Community’s fair value estimates for Prestige stand at US$80.17, pointing to a strong consensus. However, ongoing supply recovery concerns may affect earnings momentum and could challenge optimistic valuations over time. Explore more perspectives to see how opinions differ.

Explore another fair value estimate on Prestige Consumer Healthcare - why the stock might be worth just $80.17!

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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.