UPDATE 1-Prestige Brands sees weak Q1; shares fall
July 23 (Reuters) - Prestige Brands Holdings Inc (PBH.N: Quote, Profile, Research), the maker of Compound W wart remover, said it expects first-quarter earnings and revenue to fall about 7 percent from a year ago due to pricing pressure, sending its shares down more than 13 percent.
The company, a maker of healthcare, personal care and household products, said the pricing concerns were particularly felt in the cryogenic segment of the over-the-counter wart treatment category.
The Irvington, New York-based company also cited the absence of the pediatric cough/cold products Little Remedies, which were withdrawn in October 2007, as a reason for the decline in revenue.
The impact of Little Remedies recall had been taken into account in the company's earlier outlook and the weakness in the cryogenic segment is expected to "linger," JP Morgan Securities analyst John Faucher said in a note to clients.
Faucher lowered his full-year earnings forecast by 8 percent to a range of 70 cents to 76 cents a share as a result of a weak first quarter.
Prestige, however, continues to expect full-year revenue growth in the short to medum range of 2-4 percent, led by new products and growth of its Focus Brands.
Analysts on average were expecting the company to earn 17 cents a share on revenue of $79.3 million for the first quarter, according to Reuters Estimates.
Shares of the company were down $1.53 at $10.01 in late morning trade Wednesday on the New York Stock Exchange. The shares touched a low of $9.94 in early mornig trade. (Reporting by Sriram Iyer in Bangalore; Editing by Gopakumar Warrier)
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