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Perrigo Company plc (PRGO - Free Report) reported adjusted earnings of 45 cents per share in first-quarter 2023, beating both the Zacks Consensus Estimate and our model estimate of 42 cents. Earnings were up 35.6% year over year. This upside in earnings can be attributed to lower operating expenses incurred by the company during the quarter. Excluding the negative currency impact, earnings rose 47.2%.
Net sales increased 10.0% year over year to $1.18 billion, which also topped the Zacks Consensus Estimate and our model estimate of $1.15 billion and $1.16 billion, respectively. Excluding the negative currency impact, sales rose 13%. The upside was driven by strategic pricing actions undertaken by management during the quarter, sales from the newly-acquired HRA Pharma and the acquisition of the 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 6.4% year over year.
Shares of Perrigo were up 2% in pre-market trading on May 9, likely due to the better-than-expected earnings results. In the year so far, the stock hasgained 5.6% compared with the industry’s 6.5% growth.
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 first quarter of 2023 came in at $763.7 million, up 7.6% year over year, driven by acquisitions and strategic price increases. However, the upside was partially offset by two voluntary recalls during the quarter — one for a major national brand infant formula and another for an OTC product.
CSCI: The segment reported net sales of $418.1 million, up 14.7% from the year-ago period’s levels. At constant-currency (cc) rates, sales were up 23.6% year over year. Organically sales increased 4.0%. Segment revenues benefited from the higher sales of HRA Pharma brands and strategic pricing actions. Sales were negatively impacted by an unfavorable currency movement.
2023 Guidance
Perrigo reiterated its financial guidance for 2023. Management expects to report net sales growth in the range of 7-11%. Adjusted earnings per share is expected to be between $2.50 and $2.70. Adjusted tax rate is expected to be around 21.5%, while the company expects to record interest expense of around $180 million.
CEO Retirement
In a separate press release, the company also announced that its current president and chief executive officer (CEO) Mr. Murray S. Kessler will retire with effect from Jul 31, 2023. Mr. Kessler will work closely with Perrigo’s board of directors to appoint his new successor.
Perrigo currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the overall healthcare sector include Adaptimmune Therapeutics , Lisata Therapeutics (LSTA - Free Report) and Spero Therapeutics (SPRO - Free Report) , While Lisata Therapeutics and Spero Therapeutics sport a Zacks Rank #1 (Strong Buy), Adaptimmune Therapeuticscarriesa Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Spero Therapeutics’ stock has risen 9.8% in the year-to-date period. SPRO’s loss estimates for 2023 have narrowed from $1.45 to $1.02 per share in the past 60 days. During the same period, the loss estimates per share for 2024 have narrowed from $2.45 to 95 cents.
Spero Therapeutics beat earnings estimates in three of the last four quarters, while missing the mark on one occasion. On average, the company’s earnings witnessed an earnings surprise of 56.37%. In the last reported quarter, SPRO delivered an earnings surprise of 237.50%.
In the past 60 days, estimates for Lisata Therapeutics’ 2023 loss per share estimates have narrowed from $3.81 to $3.58. During the same period, the loss estimates per share for 2024 have improved from $4.01 to $3.12. Shares of Lisata Therapeutics have gained 29.3% in the year-to-date period.
Earnings of Lisata beat estimates in two of the last four quarters, while missing the mark on the other two occasions. On average, the company’s earnings witnessed a negative surprise of 5.63%. In the last reported quarter, Lisata’s earnings beat estimates by 20.83%.
In the past 60 days, estimates for Adaptimmune Therapeutics’ 2023 loss per share estimates have narrowed from 73 cents to 63 cents. During the same period, the loss estimates per share for 2024 have improved from 74 cents to 59 cents. Shares of Adaptimmune Therapeutics have declined 4.1% in the year-to-date period.
Earnings of Adaptimmune beat estimates in two of the last four quarters, met the mark on one occasion while missing the mark on another. On average, the company’s earnings witnessed a surprise of 4.80%. In the last reported quarter, Adaptimmune’s earnings beat estimates by 28.00%.
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Perrigo (PRGO) Tops Q1 Earnings & Sales, Reiterates '23 View
Perrigo Company plc (PRGO - Free Report) reported adjusted earnings of 45 cents per share in first-quarter 2023, beating both the Zacks Consensus Estimate and our model estimate of 42 cents. Earnings were up 35.6% year over year. This upside in earnings can be attributed to lower operating expenses incurred by the company during the quarter. Excluding the negative currency impact, earnings rose 47.2%.
Net sales increased 10.0% year over year to $1.18 billion, which also topped the Zacks Consensus Estimate and our model estimate of $1.15 billion and $1.16 billion, respectively. Excluding the negative currency impact, sales rose 13%. The upside was driven by strategic pricing actions undertaken by management during the quarter, sales from the newly-acquired HRA Pharma and the acquisition of the 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 6.4% year over year.
Shares of Perrigo were up 2% in pre-market trading on May 9, likely due to the better-than-expected earnings results. In the year so far, the stock hasgained 5.6% compared with the industry’s 6.5% growth.
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 first quarter of 2023 came in at $763.7 million, up 7.6% year over year, driven by acquisitions and strategic price increases. However, the upside was partially offset by two voluntary recalls during the quarter — one for a major national brand infant formula and another for an OTC product.
CSCI: The segment reported net sales of $418.1 million, up 14.7% from the year-ago period’s levels. At constant-currency (cc) rates, sales were up 23.6% year over year. Organically sales increased 4.0%. Segment revenues benefited from the higher sales of HRA Pharma brands and strategic pricing actions. Sales were negatively impacted by an unfavorable currency movement.
2023 Guidance
Perrigo reiterated its financial guidance for 2023. Management expects to report net sales growth in the range of 7-11%. Adjusted earnings per share is expected to be between $2.50 and $2.70. Adjusted tax rate is expected to be around 21.5%, while the company expects to record interest expense of around $180 million.
CEO Retirement
In a separate press release, the company also announced that its current president and chief executive officer (CEO) Mr. Murray S. Kessler will retire with effect from Jul 31, 2023. Mr. Kessler will work closely with Perrigo’s board of directors to appoint his new successor.
Perrigo Company plc Price
Perrigo Company plc price | Perrigo Company plc Quote
Zacks Rank & Stocks to Consider
Perrigo currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the overall healthcare sector include Adaptimmune Therapeutics , Lisata Therapeutics (LSTA - Free Report) and Spero Therapeutics (SPRO - Free Report) , While Lisata Therapeutics and Spero Therapeutics sport a Zacks Rank #1 (Strong Buy), Adaptimmune Therapeuticscarriesa Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Spero Therapeutics’ stock has risen 9.8% in the year-to-date period. SPRO’s loss estimates for 2023 have narrowed from $1.45 to $1.02 per share in the past 60 days. During the same period, the loss estimates per share for 2024 have narrowed from $2.45 to 95 cents.
Spero Therapeutics beat earnings estimates in three of the last four quarters, while missing the mark on one occasion. On average, the company’s earnings witnessed an earnings surprise of 56.37%. In the last reported quarter, SPRO delivered an earnings surprise of 237.50%.
In the past 60 days, estimates for Lisata Therapeutics’ 2023 loss per share estimates have narrowed from $3.81 to $3.58. During the same period, the loss estimates per share for 2024 have improved from $4.01 to $3.12. Shares of Lisata Therapeutics have gained 29.3% in the year-to-date period.
Earnings of Lisata beat estimates in two of the last four quarters, while missing the mark on the other two occasions. On average, the company’s earnings witnessed a negative surprise of 5.63%. In the last reported quarter, Lisata’s earnings beat estimates by 20.83%.
In the past 60 days, estimates for Adaptimmune Therapeutics’ 2023 loss per share estimates have narrowed from 73 cents to 63 cents. During the same period, the loss estimates per share for 2024 have improved from 74 cents to 59 cents. Shares of Adaptimmune Therapeutics have declined 4.1% in the year-to-date period.
Earnings of Adaptimmune beat estimates in two of the last four quarters, met the mark on one occasion while missing the mark on another. On average, the company’s earnings witnessed a surprise of 4.80%. In the last reported quarter, Adaptimmune’s earnings beat estimates by 28.00%.