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Perrigo (PRGO) Misses on Earnings in Q1, Reiterates View
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Perrigo Company plc (PRGO - Free Report) reported first-quarter 2018 adjusted earnings of 57 cents per share, which missed the Zacks Consensus Estimate of $1.14 by 50%. The bottom line, however, increased 14% from the year-ago figure of 50 cents.
Net sales in the reported quarter increased 1.9% to $1.22 billion. The figure surpassed the Zacks Consensus Estimate of $1.21 billion.
The company’s shares have underperformed the industry year to date. The stock has declined 9.1% as against the industry’s rally of 4.1%.
Segment Discussion
Effective Jan 1, 2017, the company’s reporting segments are: Consumer Health Care Americas (“CHCA”), Consumer Health Care International (“CHCI”), Prescription Pharmaceuticals (“RX”) and Other Segment.
CHCA: CHCA net sales in the first quarter of 2018 came in at $602 million, up 3.2% year over year. This upside can be attributed to a strong performance from the infant nutrition, analgesics and cough cold categories compared with the year-ago quarter. New product sales of $11 million also contributed to the top line.
However, this upside was partially offset by lower sales in the animal health category and discontinued products of $2 million.
CHCI: CHCI segment reported net sales of $401 million, up 7% (declined 4.5% on a constant-currency basis) from the year-ago period. Excluding exited Russian and unprofitable distribution businesses in 2017, and favorable foreign currency movements of $43 million, net revenues grew 1.4% driven by new product sales of $20 million.
However, this was partially offset by lower net sales in the cough cold, personal care and analgesics categories in addition to discontinued products of $6 million.
RX: This segment’s net sales slipped 1.5% to $214 million on a reported basis and 1.6% on a constant-currency basis. New product sales of $10 million were offset by lower net revenues of existing products of $12 million, primarily due to price erosion, which was in line with expectations. New product sales were lower than expected due to a supply disruption of a key new product.
2018 Earnings Outlook
Perrigo reiterated its revenue guidance and expects it to be in the range of $5.0-$5.1 billion in 2018.
The company also reaffirmed its adjusted earnings guidance and expects it to be in the band of $5.05 to $5.45 per share.
Corporate Governance
Perrigo’s board of directors appointed Rolf A. Classon, who served on the company’s board since May 2017, as the chairman, effective May 7.
Ligand’s earnings per share estimates have moved up from $4.24 to $4.43 for 2018 over the last 60 days. The company delivered a positive earnings surprise in three of the trailing four quarters, with an average beat of 24.88%. The company’s shares have rallied 15% year to date.
Protagonist’s loss estimates narrowed from $1.30 to 66 cents for 2018 and from $1.99 to $1.26 for 2019, over the last 60 days. The company delivered a positive earnings surprise in three of the trailing four quarters, with an average beat of 24.95%.
Illumina’s earnings per share estimates have moved up $4.59 to $4.84 for 2018 and from $5.33 to $5.57 for 2019, in the last 60 days. The company came up with a positive earnings surprise in all the preceding four quarters, with an average beat of 23.17%. The stock has rallied 17.6% so far this year.
Perrigo Company plc Price, Consensus and EPS Surprise
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Perrigo (PRGO) Misses on Earnings in Q1, Reiterates View
Perrigo Company plc (PRGO - Free Report) reported first-quarter 2018 adjusted earnings of 57 cents per share, which missed the Zacks Consensus Estimate of $1.14 by 50%. The bottom line, however, increased 14% from the year-ago figure of 50 cents.
Net sales in the reported quarter increased 1.9% to $1.22 billion. The figure surpassed the Zacks Consensus Estimate of $1.21 billion.
The company’s shares have underperformed the industry year to date. The stock has declined 9.1% as against the industry’s rally of 4.1%.
Segment Discussion
Effective Jan 1, 2017, the company’s reporting segments are: Consumer Health Care Americas (“CHCA”), Consumer Health Care International (“CHCI”), Prescription Pharmaceuticals (“RX”) and Other Segment.
CHCA: CHCA net sales in the first quarter of 2018 came in at $602 million, up 3.2% year over year. This upside can be attributed to a strong performance from the infant nutrition, analgesics and cough cold categories compared with the year-ago quarter. New product sales of $11 million also contributed to the top line.
However, this upside was partially offset by lower sales in the animal health category and discontinued products of $2 million.
CHCI: CHCI segment reported net sales of $401 million, up 7% (declined 4.5% on a constant-currency basis) from the year-ago period. Excluding exited Russian and unprofitable distribution businesses in 2017, and favorable foreign currency movements of $43 million, net revenues grew 1.4% driven by new product sales of $20 million.
However, this was partially offset by lower net sales in the cough cold, personal care and analgesics categories in addition to discontinued products of $6 million.
RX: This segment’s net sales slipped 1.5% to $214 million on a reported basis and 1.6% on a constant-currency basis. New product sales of $10 million were offset by lower net revenues of existing products of $12 million, primarily due to price erosion, which was in line with expectations. New product sales were lower than expected due to a supply disruption of a key new product.
2018 Earnings Outlook
Perrigo reiterated its revenue guidance and expects it to be in the range of $5.0-$5.1 billion in 2018.
The company also reaffirmed its adjusted earnings guidance and expects it to be in the band of $5.05 to $5.45 per share.
Corporate Governance
Perrigo’s board of directors appointed Rolf A. Classon, who served on the company’s board since May 2017, as the chairman, effective May 7.
Zacks Rank & Stocks to Consider
Perrigo is a Zacks Rank #3 (Hold) stock.
A few better-ranked stocks from the same space worth considering are Ligand Pharmaceuticals (LGND - Free Report) , Protagonist Therapeutics (PTGX - Free Report) and Illumina, Inc. (ILMN - Free Report) . All of them sport a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Ligand’s earnings per share estimates have moved up from $4.24 to $4.43 for 2018 over the last 60 days. The company delivered a positive earnings surprise in three of the trailing four quarters, with an average beat of 24.88%. The company’s shares have rallied 15% year to date.
Protagonist’s loss estimates narrowed from $1.30 to 66 cents for 2018 and from $1.99 to $1.26 for 2019, over the last 60 days. The company delivered a positive earnings surprise in three of the trailing four quarters, with an average beat of 24.95%.
Illumina’s earnings per share estimates have moved up $4.59 to $4.84 for 2018 and from $5.33 to $5.57 for 2019, in the last 60 days. The company came up with a positive earnings surprise in all the preceding four quarters, with an average beat of 23.17%. The stock has rallied 17.6% so far this year.
Perrigo Company plc Price, Consensus and EPS Surprise
Perrigo Company plc Price, Consensus and EPS Surprise | Perrigo Company plc Quote
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