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Perrigo (PRGO) Beats Q4 Earnings Estimates, Lags on Sales
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Perrigo Company plc (PRGO - Free Report) reported fourth-quarter 2022 adjusted earnings of 75 cents per share, which beat both the Zacks Consensus Estimate and our model estimate of 70 cents. Earnings were up 25.0% year over year. This upside in earnings is attributed to a favorable tax benefit stemming from the release of reserves related to previous audit years, which was partially offset by unfavorable currency movements. Excluding the negative currency impact, earnings rose 33.3%.
Net sales increased 4.6% year over year to $1.16 billion but missed both the Zacks Consensus Estimate and our model estimate of $1.20 billion. Excluding the negative currency impact, earnings rose 9.6%. The upside was driven by sales from the newly-acquired HRA Pharma and the acquisition of U.S. & Canadian GoodStart infant formula brand. These were partially offset by unfavorable currency movements and divested Latin American businesses. Organic net sales (excluding the effects of acquisitions and divestitures and the impact of currency) were up 1.5% year over year.
Shares of Perrigo were up 1.8% in after-market trading on Feb 27, likely due to the better-than-anticipated adjusted earnings per share. The stock has gained 2.3% in the past year against the industry’s plunge of 40.0%.
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”). Per management, the company gained market share in both business segments during the quarter compared with the year-ago period’s levels.
CSCA: The segment’s net sales in the fourth quarter of 2022 came in at $765.6 million, up 4% year over year. Sales increased due to acquisitions and strategic price increases.
CSCI: The segment reported net sales of $389.6 million, up 5.7% from the year-ago period’s levels. At constant-currency (cc) rates, sales were up 20.5% year over year. Organically sales increased 3.3%. Segment revenues benefitted from the higher sales of HRA Pharma brands and strategic pricing actions. Sales were negatively impacted by unfavorable currency movement and the exit from the distribution business in Russia.
Full-Year Results
Perrigo reported revenues of $4.5 billion, up 7.6% year over year. Net sales also rose 8.8% organically. The company reported adjusted earnings of $2.07 per share for 2022, a rise of one cent from the year-ago period.
2023 Guidance
Perrigo will be hosting a virtual Investor Day today where management will share the company’s 2023-2025 strategic plan to boost performance. During the event, management will also issue its financial guidance for full-year 2023.
Estimates for Adaptive Biotechnologies’ 2023 loss per share have narrowed from $1.31 to $1.15 in the past 60 days. Shares of Adaptive Biotechnologies have declined 41.6% in the past year.
Earnings of Adaptive Biotechnologies beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 10.75%. In the last reported quarter, ADPT delivered an earnings surprise of 24.32%.
Allogene’s stock has declined 30.8% in the past year. Allogene’s loss estimates for 2023 have narrowed from $2.84 to $2.83 per share in the past 60 days.
Allogene beat earnings estimates in each of the last four quarters, the average surprise being 9.44%. In the last reported quarter, the company delivered an earnings surprise of 6.45%.
Amarin’s stock has declined 44.4% in the trailing 12 months. Amarin’s loss estimates for 2023 narrowed from 8 cents per share to 6 cents in the past 60 days.
Amarin beat earnings estimates in two of the last four quarters and missed the mark on the other two occasions, the average negative surprise being 14.29%. In the last reported quarter, Amarin’s earnings beat estimates by 200.00%.
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Perrigo (PRGO) Beats Q4 Earnings Estimates, Lags on Sales
Perrigo Company plc (PRGO - Free Report) reported fourth-quarter 2022 adjusted earnings of 75 cents per share, which beat both the Zacks Consensus Estimate and our model estimate of 70 cents. Earnings were up 25.0% year over year. This upside in earnings is attributed to a favorable tax benefit stemming from the release of reserves related to previous audit years, which was partially offset by unfavorable currency movements. Excluding the negative currency impact, earnings rose 33.3%.
Net sales increased 4.6% year over year to $1.16 billion but missed both the Zacks Consensus Estimate and our model estimate of $1.20 billion. Excluding the negative currency impact, earnings rose 9.6%. The upside was driven by sales from the newly-acquired HRA Pharma and the acquisition of U.S. & Canadian GoodStart infant formula brand. These were partially offset by unfavorable currency movements and divested Latin American businesses. Organic net sales (excluding the effects of acquisitions and divestitures and the impact of currency) were up 1.5% year over year.
Shares of Perrigo were up 1.8% in after-market trading on Feb 27, likely due to the better-than-anticipated adjusted earnings per share. The stock has gained 2.3% in the past year against the industry’s plunge of 40.0%.
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”). Per management, the company gained market share in both business segments during the quarter compared with the year-ago period’s levels.
CSCA: The segment’s net sales in the fourth quarter of 2022 came in at $765.6 million, up 4% year over year. Sales increased due to acquisitions and strategic price increases.
CSCI: The segment reported net sales of $389.6 million, up 5.7% from the year-ago period’s levels. At constant-currency (cc) rates, sales were up 20.5% year over year. Organically sales increased 3.3%. Segment revenues benefitted from the higher sales of HRA Pharma brands and strategic pricing actions. Sales were negatively impacted by unfavorable currency movement and the exit from the distribution business in Russia.
Full-Year Results
Perrigo reported revenues of $4.5 billion, up 7.6% year over year. Net sales also rose 8.8% organically. The company reported adjusted earnings of $2.07 per share for 2022, a rise of one cent from the year-ago period.
2023 Guidance
Perrigo will be hosting a virtual Investor Day today where management will share the company’s 2023-2025 strategic plan to boost performance. During the event, management will also issue its financial guidance for full-year 2023.
Perrigo Company plc Price
Perrigo Company plc price | Perrigo Company plc Quote
Zacks Rank & Stocks to Consider
Perrigo currently has a Zacks Rank #2 (Buy).
Some better-ranked stocks in the overall healthcare sector include Adaptive Biotechnologies Corporation (ADPT - Free Report) , Allogene (ALLO - Free Report) and Amarin Corporation (AMRN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for Adaptive Biotechnologies’ 2023 loss per share have narrowed from $1.31 to $1.15 in the past 60 days. Shares of Adaptive Biotechnologies have declined 41.6% in the past year.
Earnings of Adaptive Biotechnologies beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 10.75%. In the last reported quarter, ADPT delivered an earnings surprise of 24.32%.
Allogene’s stock has declined 30.8% in the past year. Allogene’s loss estimates for 2023 have narrowed from $2.84 to $2.83 per share in the past 60 days.
Allogene beat earnings estimates in each of the last four quarters, the average surprise being 9.44%. In the last reported quarter, the company delivered an earnings surprise of 6.45%.
Amarin’s stock has declined 44.4% in the trailing 12 months. Amarin’s loss estimates for 2023 narrowed from 8 cents per share to 6 cents in the past 60 days.
Amarin beat earnings estimates in two of the last four quarters and missed the mark on the other two occasions, the average negative surprise being 14.29%. In the last reported quarter, Amarin’s earnings beat estimates by 200.00%.