Prestige Consumer Healthcare (NYSE:PBH) reported fiscal third-quarter results on Thursday that featured a revenue beat but an earnings miss, as the company worked to stabilize its supply chain for key brands like Clear Eyes® amid a "challenging consumer backdrop."
The Tarrytown, New York-based distributor of over-the-counter mainstays like Monistat and Dramamine posted adjusted earnings of $1.14 per share for the quarter ended December 31, 2025.
This fell just short of the $1.16 consensus estimate.
Revenue reached $283.4 million, a 2.4% decrease from the prior year but ahead of the $282.1 million forecast.
The top-line decline was primarily attributed to persistent supply constraints in the Ear & Eye Care category, specifically regarding the company's ability to meet high demand for Clear Eyes.
Despite the earnings miss, CEO Ron Lombardi highlighted strategic progress, including the successful December closing of the Pillar5 Pharma acquisition.
This vertical integration is a central pillar of the company’s "Pillar5" recovery plan, designed to bring eye care manufacturing in-house to resolve the inventory shortfalls that have plagued the segment throughout fiscal 2026.
The company also demonstrated its commitment to capital allocation by repurchasing approximately 0.8 million shares during the quarter, supported by free cash flow of $245 million or more for the full year.
Looking ahead, Prestige narrowed its full-year fiscal 2026 guidance to reflect a more cautious consumer spending environment.
The company now expects total revenue of approximately $1.1 billion and adjusted earnings of $4.54 per share—the low end of its previous $4.54–$4.58 range.