Prestige Consumer Earnings: Supply Chain Disruptions and Tough Comparison Dragged Sales

Narrow-moat Prestige Consumer Healthcare reported disappointing fourth-quarter earnings that were below our expectations. Total sales of $277 million were down 3.1% year over year, and adjusted diluted EPS of $1.02 was down from last year’s $1.07. Having said that, we maintain our fair value estimate of $68 per share as minor adjustments to our near-term outlook were offset by time value of money impacts. Shares were down about 6% at the time of writing from the soft outlook, and we think they now trade in a fair 3-star territory.