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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) will report first-quarter 2023 results on May 9, before the opening bell. In the last reported quarter, the company reported an earnings surprise of 7.14%.
Perrigo’s shares have gained 9.1% in the year so far compared with the industry’s 7.5% rise.
Image Source: Zacks Investment Research
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, registering a negative earnings surprise of 7.93% on average.
Perrigo Company plc Price, Consensus and EPS Surprise
Let’s see how things have shaped up for this announcement.
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 products added through its HRA Pharma acquisition. Significant sales growth of new products is likely to have boosted sales in the soon-to-be-reported quarter. However, currency movements are likely to have an unfavorable impact on the company’s ex-U.S. sales.
The Zacks Consensus Estimate and our model estimate for CSCA sales stand at $756.0 million and $760.6 million, respectively. For sales in the CSCI segment, the Zacks Consensus Estimate and our model estimate are pegged at $401.0 million and $396.6 million, respectively.
Higher demand for infant formula in the United States is also likely to have boosted the company’s top line in the to-be-reported quarter.
Perrigo reported higher net price realization for its products through strategic price increases in fourth-quarter 2022. The improving price trend will likely be reflected in the company’s first-quarter sales, benefiting the top line.
We expect macroeconomic factors like cost headwinds (including the higher cost of goods sold), the rising cost of capital and supply chain disruptions in certain parts of the world amid the Russia-Ukraine war to have hurt the company’s operating margins.
Investors are likely to ask questions about potential product launches this year. We also expect management to provide an update on the expected impact of macroeconomic pressures in 2023.
Earnings Whispers
Our proven model does not 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. That is not thecase here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Perrigo has an Earnings ESP of -2.33% as the Most Accurate Estimate of 42 cents per share is lower than the Zacks Consensus Estimate of 43 cents.
Here are a few stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Allogene (ALLO - Free Report) has an Earnings ESP of +3.43% and a Zacks Rank #2.
Shares of Allogene have declined 13.7% in the year-to-date period. Earnings of Allogene beat estimates in each of the last four quarters, witnessing a trailing four-quarter positive earnings surprise of 8.33%, on average. Allogene is scheduled to release first-quarter results on May 3, after market close.
Amarin Corporation (AMRN - Free Report) has an Earnings ESP of +100.00% and a Zacks Rank #3.
Amarin’s stock has gained 11.6% in the year-to-date period. Amarin beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions. The company has delivered a negative earnings surprise of 14.29%, on average. Amarin will report its first-quarter results on May 3, before the opening bell.
argenx (ARGX - Free Report) has an Earnings ESP of +1.00% and a Zacks Rank #3.
In the year so far, argenx’s stock has risen 2.4%. argenx’s earnings beat estimates in three of the last four quarters and missed the mark on one occasion, delivering a trailing four-quarter earnings surprise of 22.38%, on average. argenx is scheduled to release first-quarter results on May 4, before the opening bell.
Image: Bigstock
Perrigo (PRGO) to Report Q1 Earnings: What's in the Cards?
Perrigo Company plc (PRGO - Free Report) will report first-quarter 2023 results on May 9, before the opening bell. In the last reported quarter, the company reported an earnings surprise of 7.14%.
Perrigo’s shares have gained 9.1% in the year so far compared with the industry’s 7.5% rise.
Image Source: Zacks Investment Research
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, registering a negative earnings surprise of 7.93% on average.
Perrigo Company plc Price, Consensus and EPS Surprise
Perrigo Company plc price-consensus-eps-surprise-chart | Perrigo Company plc Quote
Let’s see how things have shaped up for this announcement.
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 products added through its HRA Pharma acquisition. Significant sales growth of new products is likely to have boosted sales in the soon-to-be-reported quarter. However, currency movements are likely to have an unfavorable impact on the company’s ex-U.S. sales.
The Zacks Consensus Estimate and our model estimate for CSCA sales stand at $756.0 million and $760.6 million, respectively. For sales in the CSCI segment, the Zacks Consensus Estimate and our model estimate are pegged at $401.0 million and $396.6 million, respectively.
Higher demand for infant formula in the United States is also likely to have boosted the company’s top line in the to-be-reported quarter.
Perrigo reported higher net price realization for its products through strategic price increases in fourth-quarter 2022. The improving price trend will likely be reflected in the company’s first-quarter sales, benefiting the top line.
We expect macroeconomic factors like cost headwinds (including the higher cost of goods sold), the rising cost of capital and supply chain disruptions in certain parts of the world amid the Russia-Ukraine war to have hurt the company’s operating margins.
Investors are likely to ask questions about potential product launches this year. We also expect management to provide an update on the expected impact of macroeconomic pressures in 2023.
Earnings Whispers
Our proven model does not 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. That is not thecase here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Perrigo has an Earnings ESP of -2.33% as the Most Accurate Estimate of 42 cents per share is lower than the Zacks Consensus Estimate of 43 cents.
Zacks Rank: Perrigo has a Zacks Rank #5 (Strong Sell), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Allogene (ALLO - Free Report) has an Earnings ESP of +3.43% and a Zacks Rank #2.
Shares of Allogene have declined 13.7% in the year-to-date period. Earnings of Allogene beat estimates in each of the last four quarters, witnessing a trailing four-quarter positive earnings surprise of 8.33%, on average. Allogene is scheduled to release first-quarter results on May 3, after market close.
Amarin Corporation (AMRN - Free Report) has an Earnings ESP of +100.00% and a Zacks Rank #3.
Amarin’s stock has gained 11.6% in the year-to-date period. Amarin beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions. The company has delivered a negative earnings surprise of 14.29%, on average. Amarin will report its first-quarter results on May 3, before the opening bell.
argenx (ARGX - Free Report) has an Earnings ESP of +1.00% and a Zacks Rank #3.
In the year so far, argenx’s stock has risen 2.4%. argenx’s earnings beat estimates in three of the last four quarters and missed the mark on one occasion, delivering a trailing four-quarter earnings surprise of 22.38%, on average. argenx is scheduled to release first-quarter results on May 4, before the opening bell.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.