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Perrigo (PRGO) to Report Q1 Earnings: What's in the Cards?
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Perrigo Company plc (PRGO - Free Report) is scheduled to report first-quarter 2022 results on May 11, before market open. In the last reported quarter, the company delivered an earnings surprise of 7.14%.
Perrigo’s earnings performance has been dismal over the trailing four quarters. The company’s earnings missed estimates in three of the last four quarters and beat the same once, delivering an average negative earnings surprise of 13.09%.
Shares of Perrigo have declined 16.5% so far this year compared with the industry’s decrease of 18.3%.
Image Source: Zacks Investment Research
Factors at Play
In the first quarter, the performance of Perrigo’s Consumer Self Care Americas (“CSCA”) and Consumer Self Care International (“CSCI”) segments is expected to have been aided by the products added through acquisitions. Significant sales growth of new products is likely to have boosted sales further during the soon-to-be-reported quarter. Currency movements are likely to have hurt sales growth during the first quarter.
Sales of cough/cold products had demonstrated a strong recovery during the last two quarters. The momentum is expected to have continued during the first quarter, boosting the top line.
Perrigo reported higher net price realization for its products during the fourth quarter. The improving price trend is likely to have reflected in the company’s first-quarter sales as well, benefiting the top line. However, these benefits are likely to have been offset by a rise in input costs during the soon-to-be-reported quarter. Higher input costs are likely to have hurt margins.
Lower infection rates in the first quarter are likely to have boosted strong consumer takeaway across the majority of businesses.
Loss of sales due to discontinued products and the exited businesses might have partially offset the gain from the new products. Perrigo divested its Mexico and Brazil-based over-the-counter business in March.
Investors are likely to ask questions on potential product launches in 2022 and provide an update on the anticipated growth in cold/cough product sales in 2022. They may also ask questions related to the impact of a probable COVID-19 infection wave this year on top-line growth.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Perrigo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (41 cents per share) and the Zacks Consensus Estimate (42 cents per share), is -2.38%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Applied Therapeutics’ stock has declined 79.4% year to date. Applied Therapeutics topped earnings estimates in two of the last four quarters, missing the same once and meeting once. APLT has a four-quarter earnings surprise of 2.58%, on average.
Landos Biopharma (LABP - Free Report) has an Earnings ESP of +4.70% and a Zacks Rank of 2.
Landos’ stock has lost 83.8% year to date. Landos topped earnings estimates in two of the last four quarters, missing the same once and meeting them once. LABP has a four-quarter earnings surprise of 34.91%, on average.
Angion Biomedica has an Earnings ESP of +26.44% and a Zacks Rank #2.
Angion’s stock has declined 45.2% so far this year. Angion topped earnings estimates in three of the last four quarters and missed the same once. ANGN has a four-quarter earnings surprise of 47.51%, on average.
Image: Bigstock
Perrigo (PRGO) to Report Q1 Earnings: What's in the Cards?
Perrigo Company plc (PRGO - Free Report) is scheduled to report first-quarter 2022 results on May 11, before market open. In the last reported quarter, the company delivered an earnings surprise of 7.14%.
Perrigo’s earnings performance has been dismal over the trailing four quarters. The company’s earnings missed estimates in three of the last four quarters and beat the same once, delivering an average negative earnings surprise of 13.09%.
Shares of Perrigo have declined 16.5% so far this year compared with the industry’s decrease of 18.3%.
Image Source: Zacks Investment Research
Factors at Play
In the first quarter, the performance of Perrigo’s Consumer Self Care Americas (“CSCA”) and Consumer Self Care International (“CSCI”) segments is expected to have been aided by the products added through acquisitions. Significant sales growth of new products is likely to have boosted sales further during the soon-to-be-reported quarter. Currency movements are likely to have hurt sales growth during the first quarter.
Sales of cough/cold products had demonstrated a strong recovery during the last two quarters. The momentum is expected to have continued during the first quarter, boosting the top line.
Perrigo reported higher net price realization for its products during the fourth quarter. The improving price trend is likely to have reflected in the company’s first-quarter sales as well, benefiting the top line. However, these benefits are likely to have been offset by a rise in input costs during the soon-to-be-reported quarter. Higher input costs are likely to have hurt margins.
Lower infection rates in the first quarter are likely to have boosted strong consumer takeaway across the majority of businesses.
Loss of sales due to discontinued products and the exited businesses might have partially offset the gain from the new products. Perrigo divested its Mexico and Brazil-based over-the-counter business in March.
Investors are likely to ask questions on potential product launches in 2022 and provide an update on the anticipated growth in cold/cough product sales in 2022. They may also ask questions related to the impact of a probable COVID-19 infection wave this year on top-line growth.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Perrigo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (41 cents per share) and the Zacks Consensus Estimate (42 cents per share), is -2.38%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Perrigo carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some biotech/drug stocks that also have the right combination of elements to beat on earnings this time around:
Applied Therapeutics (APLT - Free Report) has an Earnings ESP of +21.95% and a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Applied Therapeutics’ stock has declined 79.4% year to date. Applied Therapeutics topped earnings estimates in two of the last four quarters, missing the same once and meeting once. APLT has a four-quarter earnings surprise of 2.58%, on average.
Landos Biopharma (LABP - Free Report) has an Earnings ESP of +4.70% and a Zacks Rank of 2.
Landos’ stock has lost 83.8% year to date. Landos topped earnings estimates in two of the last four quarters, missing the same once and meeting them once. LABP has a four-quarter earnings surprise of 34.91%, on average.
Angion Biomedica has an Earnings ESP of +26.44% and a Zacks Rank #2.
Angion’s stock has declined 45.2% so far this year. Angion topped earnings estimates in three of the last four quarters and missed the same once. ANGN has a four-quarter earnings surprise of 47.51%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.