It's been a pretty great week for Prestige Consumer Healthcare Inc. (NYSE:PBH) shareholders, with its shares surging 11% to US$68.67 in the week since its latest third-quarter results. It was a credible result overall, with revenues of US$283m and statutory earnings per share of US$1.06 both in line with analyst estimates, showing that Prestige Consumer Healthcare is executing in line with expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for Prestige Consumer Healthcare from seven analysts is for revenues of US$1.16b in 2025. If met, it would imply a credible 2.4% increase on its revenue over the past 12 months. Prestige Consumer Healthcare is also expected to turn profitable, with statutory earnings of US$4.63 per share. In the lead-up to this report, the analysts had been modelling revenues of US$1.16b and earnings per share (EPS) of US$4.60 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.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$74.20. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Prestige Consumer Healthcare at US$84.00 per share, while the most bearish prices it at US$65.00. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Prestige Consumer Healthcare's past performance and to peers in the same industry. We would highlight that Prestige Consumer Healthcare's revenue growth is expected to slow, with the forecast 1.9% annualised growth rate until the end of 2025 being well below the historical 4.2% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that Prestige Consumer Healthcare is also expected to grow slower than other industry participants.
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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Prestige Consumer Healthcare going out to 2026, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 1 warning sign for Prestige Consumer Healthcare that you should be aware of.
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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.