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Perrigo's Q3 Earnings Fall Short of Estimates, Sales View Updated
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Perrigo Company plc (PRGO - Free Report) reported adjusted earnings of 81 cents per share in the third quarter of 2024, missing the Zacks Consensus Estimate of 82 cents. The reported figure increased 26.6% year over year, primarily due to improved margins and lower variable expenses.
Net sales declined 3.2% year over year to $1.09 billion, missing the Zacks Consensus Estimate of $1.12 billion. The downside was due to lower net sales in the Nutrition category and loss of sales stemming from exited businesses and product lines.
During the quarter, sales dropped 1.3% year over year on account of exited businesses and product lines but benefited from favorable currency movement by 0.5%. At constant currency (excluding foreign currency translation), sales fell 3.7%. Organic net sales (excluding the effects of acquisitions and divestitures and the impact of currency) were down 2.4%.
Year to date, shares of Perrigo have plunged 21.3% against the industry’s 13.9% growth.
Image Source: Zacks Investment Research
More on PRGO’s Earnings
Perrigo reports its results under the following segments — Consumer Self Care Americas (CSCA) and Consumer Self Care International (CSCI).
CSCA: The segment’s net sales in the quarter came in at $671 million, down 4.6% year over year. The downside was due to previously disclosed lost distribution of lower margin products in U.S. store brand across multiple product categories. Organic net sales fell 4.4%.
CSCI: The segment reported net sales of $416 million, down 1.0% from the year-ago period’s levels due to product line exits. This fall was partially offset by favorable currency movements. At constant currency rates, sales were down 2.2% year over year. Organically, sales increased 1%.
PRGO’s 2024 Guidance
Perrigo updated its guidance for sales. Management anticipates fiscal 2024 total net sales growth at the lower end of the previously forecasted ranges, with sales expected to decline 3% to 5% compared to the prior year. This revision in guidance was likely made to account for lower global seasonal demand experienced in the first half of 2024 and expected lower distribution in the U.S. store brand in the second half of 2024.
Management now expects the adjusted tax rate to be 19-20% compared to the previous guidance of around 20.5%.
Perrigo reiterated the rest of its financial guidance. Adjusted earnings per share (EPS) are expected between $2.50 and $2.65. The company expects interest expenses to be $180 million.
In the past 60 days, estimates for Amicus Therapeutics’ 2024 EPS have moved up from 21 to 22 cents. EPS estimates for 2025 have increased from 50 to 53 cents during the same period. Year to date, shares of FOLD have lost 17.3%.
FOLD’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 23.96%.
In the past 60 days, estimates for Biogen’s 2024 EPS have increased from $16.12 to $16.36. EPS estimates for 2025 have improved from $17.09 to $17.15. Year to date, shares of BIIB have soared 40.9%.
Biogen’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 9.99%.
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Perrigo's Q3 Earnings Fall Short of Estimates, Sales View Updated
Perrigo Company plc (PRGO - Free Report) reported adjusted earnings of 81 cents per share in the third quarter of 2024, missing the Zacks Consensus Estimate of 82 cents. The reported figure increased 26.6% year over year, primarily due to improved margins and lower variable expenses.
Net sales declined 3.2% year over year to $1.09 billion, missing the Zacks Consensus Estimate of $1.12 billion. The downside was due to lower net sales in the Nutrition category and loss of sales stemming from exited businesses and product lines.
During the quarter, sales dropped 1.3% year over year on account of exited businesses and product lines but benefited from favorable currency movement by 0.5%. At constant currency (excluding foreign currency translation), sales fell 3.7%. Organic net sales (excluding the effects of acquisitions and divestitures and the impact of currency) were down 2.4%.
Year to date, shares of Perrigo have plunged 21.3% against the industry’s 13.9% growth.
Image Source: Zacks Investment Research
More on PRGO’s Earnings
Perrigo reports its results under the following segments — Consumer Self Care Americas (CSCA) and Consumer Self Care International (CSCI).
CSCA: The segment’s net sales in the quarter came in at $671 million, down 4.6% year over year. The downside was due to previously disclosed lost distribution of lower margin products in U.S. store brand across multiple product categories. Organic net sales fell 4.4%.
CSCI: The segment reported net sales of $416 million, down 1.0% from the year-ago period’s levels due to product line exits. This fall was partially offset by favorable currency movements. At constant currency rates, sales were down 2.2% year over year. Organically, sales increased 1%.
PRGO’s 2024 Guidance
Perrigo updated its guidance for sales. Management anticipates fiscal 2024 total net sales growth at the lower end of the previously forecasted ranges, with sales expected to decline 3% to 5% compared to the prior year. This revision in guidance was likely made to account for lower global seasonal demand experienced in the first half of 2024 and expected lower distribution in the U.S. store brand in the second half of 2024.
Management now expects the adjusted tax rate to be 19-20% compared to the previous guidance of around 20.5%.
Perrigo reiterated the rest of its financial guidance. Adjusted earnings per share (EPS) are expected between $2.50 and $2.65. The company expects interest expenses to be $180 million.
PRGO’s Zacks Rank
Perrigo currently has a Zacks Rank #4 (Sell).
Perrigo Company plc Price
Perrigo Company plc price | Perrigo Company plc Quote
Key Picks Among Biotech Stocks
Some better-ranked stocks from the sector are Amicus Therapeutics (FOLD - Free Report) and Biogen (BIIB - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, estimates for Amicus Therapeutics’ 2024 EPS have moved up from 21 to 22 cents. EPS estimates for 2025 have increased from 50 to 53 cents during the same period. Year to date, shares of FOLD have lost 17.3%.
FOLD’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 23.96%.
In the past 60 days, estimates for Biogen’s 2024 EPS have increased from $16.12 to $16.36. EPS estimates for 2025 have improved from $17.09 to $17.15. Year to date, shares of BIIB have soared 40.9%.
Biogen’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 9.99%.