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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

<ul><li>PBH reported 4QFY26 adjusted EPS of $1.23 versus $1.32 in 4QFY25, a decline of 6.8% and below expectations. Our estimate was $1.40 and consensus was $1.39.</li><li>Full-year FY26 adjusted EPS of $4.38 came in below the company’s own expectation of ~$4.54 and below the $4.52 reported in FY25.</li><li>Revenue of $281.6 million in the quarter fell 5.0% Y/Y on a reported basis and 6.4% organically, also below expectations, reflecting a combination of persistent Clear Eyes supply constraints and incremental shipping disruptions in the Middle East that further pressured 4Q results.</li></ul>

PBH reported 4QFY26 adjusted EPS of $1.23 versus $1.32 in 4QFY25, a decline of 6.8% and below expectations. Our estimate was $1.40 and consensus was $1.39.Full-year FY26 adjusted EPS of $4.38 came in below the company’s own expectation of ~$4.54 and below the $4.52 reported in FY25.Revenue of $281.6 million in the quarter fell 5.0% Y/Y on a reported basis and 6.4% organically, also below expectations, reflecting a combination of persistent Clear Eyes supply constraints and incremental shipping disruptions in the Middle East that further pressured 4Q results.

PBH: Supply-Driven 4QFY26 Miss Obscures a Strengthening Multi-Year Story