Primo Brands Q3 sales beat estimates, sets $300 mln share buyback
Overview
US beverage company's Q3 net sales rose 3.1%, beating analyst expectations
Adjusted EPS for Q3 was $0.43, beating analyst expectations
Company announced new $300 mln share repurchase program
Outlook
Primo Brands maintains 2026 net sales growth guidance at midpoint of 2%-4% range
Company sees 2026 adj EBITDA at lower end of $1.47 bln-$1.52 bln range
Company says macro-cost pressures remain a factor for 2026
Result Drivers
PREMIUM AND REGIONAL WATER - Co said Q3 sales growth was primarily driven by higher sales of premium brands and regional spring water
LOWER INTEGRATION COSTS - Co said gross margin improvement was due to lower non-recurring integration-related costs, partially offset by higher transportation costs
LOWER SG&A - Co said SG&A expenses fell due to reduced marketing costs and lower amortization of definite-lived intangibles
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $1.82 bln | $1.79 bln (10 Analysts) |
Q3 Adjusted EPS | Beat | $0.43 | $0.40 (12 Analysts) |
Q3 EPS | $0.34 | ||
Q3 Adjusted Net Income | Beat | $157.10 mln | $147.10 mln (7 Analysts) |
Q3 EPS from Cont Ops | $0.34 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the non-alcoholic beverages peer group is "hold."
Wall Street's median 12-month price target for Primo Brands Corp is $29.00, about 38% above its November 4 closing price of $21.02
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)