Perrigo Company plc ( PRGO Quick Quote PRGO - Free Report) reported fourth-quarter 2021 adjusted earnings of 60 cents per share, which beat the Zacks Consensus Estimate of 56 cents. Earnings increased 27.7% year over year due to higher revenues, partially offset by higher cost to overcome supply chain disruption.
Net sales increased 4.9% year over year to $1.1 billion, in line with the Zacks Consensus Estimate. The year-over-year increase was driven by a strong rebound in sales of cough/cold products, additional sales from new products and higher net price realization. These were partially offset by a loss of sales from discontinued products and unfavorable currency movements. Organic net sales were up 5.5% year over year.
Shares of Perrigo have declined 15.9% in the past year compared with the
industry’s decrease of 15%. Image Source: Zacks Investment Research Segment Discussion
Perrigo reports its results under the following segments — Consumer Self Care Americas (“CSCA”) and Consumer Self Care International (“CSCI”). Please note that the company completed the divestment of its generic Rx Pharmaceuticals business to Altaris Capital Partners in July 2021. The company reported the generic Rx pharmaceuticals business as discontinued operations.
CSCA:Net sales of the segment in the fourth quarter of 2021 came in at $736 million, up 5% year over year. Sales increased due to a strong rebound in cough/cold sales and higher sales of Upper Respiratory, Pain & Sleep-Aids, Nutrition, and Vitamins, Minerals, and Supplements products. This was partially offset by lower sales from Skincare & Personal Hygiene, Healthy Lifestyle and Oral Care products. CSCI:The segment reported net sales of $369 million, up 4.6% from the year-ago period. Organically sales increased 6.4%. Sales were driven by skincare, digestive health and cough/cold products partially offset by lower sales of products from Oral Care, Healthy Lifestyle, Pain & Sleep-Aids and VMS categories. Full-Year Results
Perrigo reported revenues of $4.1 billion, up 1.2% year over year. Net sales declined 0.7% organically. The company reported adjusted earnings of $2.06 per share for 2021, down 11.6% from the year-ago period.
Perrigo issued its earnings and revenue guidance for 2022. The company expects adjusted earnings per share to be in the range of $2.10 to $2.30. It expects revenues in 2022 to grow by 3.5% to 4.5%.
Perrigo expects to complete the previously announced acquisition of HRA Pharma in June 2022. The company expects the products added following the completion of the acquisition to bring additional sales of $170-$190 million. It expects the acquisition to add 30 cents to the guided earnings range.
Zacks Rank and Stocks to Consider
Currently, Perrigo carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the pharma/biotech sector include
Celularity ( CELU Quick Quote CELU - Free Report) , Gamida Cell ( GMDA Quick Quote GMDA - Free Report) and Assertio ( ASRT Quick Quote ASRT - Free Report) , all carrying a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
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