Perrigo Company plc (PRGO Quick QuotePRGO - Free Report) is one of the largest store brand manufacturers of over-the-counter (OTC) pharmaceutical products and infant formulas. The Dublin, Ireland-based acquired Omega Pharma in Mar 2015 to form a leading OTC health care company. Post-acquisition, Perrigo changed its fiscal year to the calendar year.

 

Perrigo also changed its reporting segments to Consumer HealthCare, Branded Consumer Healthcare (newly acquired Omega business), Prescription Pharmaceuticals (Rx), Specialty Sciences and Other (includes the active pharmaceutical ingredients business). The company has been pursing prudent acquisitions under each segment.

 

In this scenario, investor focus will be on the company’s performance apart from the usual top-and bottom-line numbers.

 

Perrigo has a pretty good track record with the company beating earnings estimates in three of the last four quarters with an average positive earnings surprise of 1.44%.

 

Currently, Perrigo has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

 

Earnings: Perrigo failed to beat on second-quarter 2016 earnings. The company reported EPS of $1.93 while our consensus called for EPS of $2.00.

 

Revenues: Revenues in the reported quarter came in above expectations. Perrigo posted revenues of $1.48 billion, compared to our consensus estimate of $1.44 billion.

 

Key Stats: Excluding any net sales contribution from held-for-sale businesses (primarily the VMS business), adjusted net sales in the quarter came in at $1.44 billion. The company’s Consumer Healthcare segment performed disappointingly in the reported quarter.

 

2016 Earnings View Lowered: Primarily due to revised expectations for the Rx segment, the company now expects 2016 earnings in the range of $6.85 to $7.15 per share (old guidance: $8.20 to $8.60 per share). The Zacks Consensus Estimate for earnings is $8.29 per share.

 

Check back later for our full write up on this Perrigo earnings report later!