Primo Brands (NYSE:PRMB) Issues Quarterly Earnings Results

Primo Brands (NYSE:PRMB) posted its earnings results on Wednesday. The company reported $0.37 EPS for the quarter, topping the consensus estimate of $0.32 by $0.05, FiscalAI reports. Primo Brands had a net margin of 1.49% and a return on equity of 14.18%. The firm had revenue of $1.80 billion for the quarter, compared to analysts’ expectations of $1.77 billion. During the same quarter last year, the firm earned $0.36 EPS. The company’s quarterly revenue was up 3.8% compared to the same quarter last year.

Here are the key takeaways from Primo Brands’ conference call:

• Second-quarter net sales rose 4.2% to $1.8 billion, ahead of expectations, while adjusted EBITDA increased 5% to $385 million and margin expanded modestly to 21.4%.
• Direct delivery returned to growth, with comparable sales up 0.4% and a 340-basis-point sequential improvement, supported by better customer service, lower quits and call volumes, and mid-90s on-time-and-full performance.
• Primo raised its 2026 comparable net sales growth outlook for the second consecutive quarter to 2%-4% from 1%-3%, while reaffirming adjusted EBITDA guidance of $1.465 billion-$1.515 billion and adjusted free cash flow guidance of $790 million-$810 million.
• Retail growth remained broad-based, including 30.5% growth in premium water, 4.1% growth in regional spring water, and gains across value and volume share; club and away-from-home channels also delivered mid- to high-single-digit growth.
• Profitability remains exposed to higher transportation costs, tighter freight markets, and commodity inflation, while management plans continued investments in customer service, technology, marketing, and supply-chain capabilities, keeping full-year EBITDA guidance unchanged despite the sales upgrade.

Primo Brands Trading Down 0.4%

PRMB stock traded down $0.11 during midday trading on Friday, hitting $23.80. The company had a trading volume of 2,839,752 shares, compared to its average volume of 4,658,037. The stock has a market cap of $8.64 billion, a price-to-earnings ratio of 91.68, a PEG ratio of 2.14 and a beta of 0.74. Primo Brands has a 52 week low of $14.36 and a 52 week high of $26.21. The company has a current ratio of 0.98, a quick ratio of 0.79 and a debt-to-equity ratio of 1.72. The stock’s 50 day moving average price is $23.98 and its 200 day moving average price is $21.62.

Primo Brands Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 8th. Investors of record on Monday, August 24th will be given a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a yield of 2.0%. The ex-dividend date is Monday, August 24th. Primo Brands’s dividend payout ratio (DPR) is presently 342.86%.

Analyst Ratings Changes

A number of research firms have recently commented on PRMB. Weiss Ratings upgraded Primo Brands from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, May 11th. TD Cowen reiterated a “buy” rating on shares of Primo Brands in a research note on Thursday. Wall Street Zen raised shares of Primo Brands from a “sell” rating to a “hold” rating in a research report on Saturday, May 23rd. Morgan Stanley reaffirmed an “overweight” rating and issued a $29.00 price target on shares of Primo Brands in a report on Friday. Finally, Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a $25.00 price objective on shares of Primo Brands in a research note on Thursday. Eleven research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Primo Brands has a consensus rating of “Moderate Buy” and a consensus price target of $28.25.

Institutional Investors Weigh In On Primo Brands

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Caption Management LLC purchased a new position in shares of Primo Brands in the third quarter valued at about $27,000. EverSource Wealth Advisors LLC grew its stake in shares of Primo Brands by 102.4% in the second quarter. EverSource Wealth Advisors LLC now owns 2,091 shares of the company’s stock worth $62,000 after purchasing an additional 1,058 shares during the last quarter. Picton Mahoney Asset Management increased its holdings in Primo Brands by 65.2% during the 4th quarter. Picton Mahoney Asset Management now owns 2,153 shares of the company’s stock valued at $35,000 after purchasing an additional 850 shares during the period. Caitong International Asset Management Co. Ltd raised its position in Primo Brands by 21,481.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 2,374 shares of the company’s stock valued at $39,000 after purchasing an additional 2,363 shares during the last quarter. Finally, Quarry LP lifted its holdings in Primo Brands by 516.6% in the 4th quarter. Quarry LP now owns 2,380 shares of the company’s stock worth $39,000 after buying an additional 1,994 shares during the period. 87.71% of the stock is currently owned by institutional investors.

About Primo Brands

Primo Brands (NYSE: PRMB) is a consumer packaged beverage company that was established as an independent entity following a corporate spin‐off in 2023. The company specializes in the production, marketing and distribution of a broad portfolio of bottled water products, including purified, mineral and sparkling varieties. Through its focus on quality control and innovation, Primo Brands aims to deliver clean, great-tasting water in formats tailored to both at-home consumption and on-the-go lifestyles.

Its product range spans multi-serve and single-serve bottles, aluminum cans and other eco-friendly packaging solutions.