Prestige Consumer Healthcare Inc. reported its first-quarter fiscal 2026 results, with revenues of $249.5 million, a 6.6% decrease from the prior year, primarily due to supply constraints for Clear Eyes. Diluted earnings per share for the quarter were $0.95, compared to $0.98 in the prior year period.
Despite the revenue shortfall, the International OTC segment showed strong growth, increasing by 6.1%. The company also generated robust free cash flow of $78.2 million in the quarter, an increase from $53.6 million in the prior year, attributed to favorable working capital timing and lower interest expense.
In a strategic move to address eye care supply issues, Prestige Consumer Healthcare announced a definitive agreement to acquire Pillar5 Pharma Inc., a key sterile ophthalmic manufacturer and current Clear Eyes supplier, for approximately $100 million. This acquisition is expected to be EPS neutral and close in the third quarter of fiscal 2026, aiming to expand production capacity and secure long-term supply.
Following the Q1 performance and the acquisition, the company updated its fiscal 2026 outlook, now anticipating revenues of $1,100 million to $1,115 million and adjusted EPS of $4.50 to $4.58. The free cash flow forecast of $245 million or more for the full year remains unchanged, reflecting confidence in overall financial strength despite near-term challenges.
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