We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Perrigo Company (PRGO) Up 4.7% Since Its Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Perrigo Company plc (PRGO - Free Report) . Shares have added about 4.7% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is PRGO due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Perrigo Surpassed Earnings in Q4, Revenues Down Y/Y
Perrigo Company reported fourth-quarter 2017 adjusted earnings of $1.28 per share, which beat the Zacks Consensus Estimate of $1.24 by 3.2%. The bottom line also increased 3.2% from the year-ago figure.
Net sales in the reported quarter declined 3.6% to $1.28 billion as divestitures of some businesses hurt the top line. But the metric surpassed the Zacks Consensus Estimate of $1.25 billion. Moreover, excluding the impact of divestitures, sales nudged up 2.1% year over year.
Segment Discussion
CHCA: CHCA net sales in the fourth quarter of 2017 came in at $644 million, up 2.7% year over year. This upside can be attributed to a strong performance from the gastrointestinal and analgesics categories compared with the year-ago quarter. New product sales of $17 million also contributed to the top line, led by the store brand version of Nexium, launched last September, and smoking cessation products.
However, this upside was partially offset by lower sales from nutritional drink products in the infant nutrition category as well as pricing pressure in certain OTC (over the counter) categories.
CHCI:CHCI segment reported net sales of $374 million, down 10.8% (declined 16.9% on a constant-currency basis) from the year-ago period. Excluding contributions from the divested European distribution businesses and favorable currency movements, organic net sales increased approximately 3.3% owing to higher sales of new products.
The company also witnessed higher new product sales in the personal care category as well as the store brand business in the U.K. However, this was partially offset by lower net sales in the anti-parasite category.
Prescription Pharmaceuticals (RX): The Prescription Pharmaceuticals segment net sales slipped 1.7% to $261 million on a reported basis and 1.8% on a constant-currency basis. This sales dip can be attributed to lower sales of Entocort due to competitive pressures and price erosion.
2017 Results
Full-year sales decreased 6.3% year over year to $4.9 billion. The metric was however, in line with both the Zacks Consensus Estimate and preliminary results.
The 2017 earnings per share of $4.93 were slightly higher than the Zacks Consensus Estimate of $4.89 but declined 2.8% compared with the year-ago figure.
2018 Earnings Outlook
Perrigo expects revenues in the range of $5.0-$5.1 billion in 2018, above 2017 revenues of 4.9 billion.
The company projects earnings in the band of $5.05-$5.45 per share, also ahead of the full-year adjusted earnings of $4.93.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been eight revisions lower for the current quarter. In the past month, the consensus estimate has shifted by 6.2% due to these changes.
At this time, PRGO has a nice Growth Score of B, though it is lagging a lot on the momentum front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Notably, PRGO has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Perrigo Company (PRGO) Up 4.7% Since Its Last Earnings Report?
It has been about a month since the last earnings report for Perrigo Company plc (PRGO - Free Report) . Shares have added about 4.7% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is PRGO due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Perrigo Surpassed Earnings in Q4, Revenues Down Y/Y
Perrigo Company reported fourth-quarter 2017 adjusted earnings of $1.28 per share, which beat the Zacks Consensus Estimate of $1.24 by 3.2%. The bottom line also increased 3.2% from the year-ago figure.
Net sales in the reported quarter declined 3.6% to $1.28 billion as divestitures of some businesses hurt the top line. But the metric surpassed the Zacks Consensus Estimate of $1.25 billion. Moreover, excluding the impact of divestitures, sales nudged up 2.1% year over year.
Segment Discussion
CHCA: CHCA net sales in the fourth quarter of 2017 came in at $644 million, up 2.7% year over year. This upside can be attributed to a strong performance from the gastrointestinal and analgesics categories compared with the year-ago quarter. New product sales of $17 million also contributed to the top line, led by the store brand version of Nexium, launched last September, and smoking cessation products.
However, this upside was partially offset by lower sales from nutritional drink products in the infant nutrition category as well as pricing pressure in certain OTC (over the counter) categories.
CHCI:CHCI segment reported net sales of $374 million, down 10.8% (declined 16.9% on a constant-currency basis) from the year-ago period. Excluding contributions from the divested European distribution businesses and favorable currency movements, organic net sales increased approximately 3.3% owing to higher sales of new products.
The company also witnessed higher new product sales in the personal care category as well as the store brand business in the U.K. However, this was partially offset by lower net sales in the anti-parasite category.
Prescription Pharmaceuticals (RX): The Prescription Pharmaceuticals segment net sales slipped 1.7% to $261 million on a reported basis and 1.8% on a constant-currency basis. This sales dip can be attributed to lower sales of Entocort due to competitive pressures and price erosion.
2017 Results
Full-year sales decreased 6.3% year over year to $4.9 billion. The metric was however, in line with both the Zacks Consensus Estimate and preliminary results.
The 2017 earnings per share of $4.93 were slightly higher than the Zacks Consensus Estimate of $4.89 but declined 2.8% compared with the year-ago figure.
2018 Earnings Outlook
Perrigo expects revenues in the range of $5.0-$5.1 billion in 2018, above 2017 revenues of 4.9 billion.
The company projects earnings in the band of $5.05-$5.45 per share, also ahead of the full-year adjusted earnings of $4.93.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been eight revisions lower for the current quarter. In the past month, the consensus estimate has shifted by 6.2% due to these changes.
Perrigo Company plc Price and Consensus
Perrigo Company plc Price and Consensus | Perrigo Company plc Quote
VGM Scores
At this time, PRGO has a nice Growth Score of B, though it is lagging a lot on the momentum front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Notably, PRGO has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.