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Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

Prestige Brands Holdings, Inc / Equity Bottom-Up

<div><ul><li>PBH reported 2QFY26 adjusted EPS of $1.07 versus $1.09 in 2QFY25, above our $0.97 estimate, which was also FactSet consensus.</li><li>Sales in the quarter declined 3.4% Y/Y to $274.1MM, above our $256.9MM estimate, as well as consensus of $257.1MM.</li><li>Management previously expected sales in the range of $256-259MM, so sales exceeded management’s original expectations as well. </li></ul></div>

PBH reported 2QFY26 adjusted EPS of $1.07 versus $1.09 in 2QFY25, above our $0.97 estimate, which was also FactSet consensus.Sales in the quarter declined 3.4% Y/Y to $274.1MM, above our $256.9MM estimate, as well as consensus of $257.1MM.Management previously expected sales in the range of $256-259MM, so sales exceeded management’s original expectations as well. 

PBH: Demand Pull-Forward Drives 2QFY26 Upside; Raising EPS Estimates Due to Strong Free Cash Flow