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Perrigo to Report Q1 Earnings: Is a Beat in Store for the Stock?

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We expect Perrigo Company plc (PRGO - Free Report) to surpass expectations when it reports first-quarter 2025 earnings on May 7, before the opening bell. The company’s earnings beat estimates by 1.09% in the last reported quarter.

The Zacks Consensus Estimate for sales and earnings is pegged at $1.08 billion and 53 cents per share, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Factors Shaping PRGO’s Upcoming Results

Perrigo reports its results under two segments: Consumer Self Care Americas (CSCA) and Consumer Self Care International (CSCI).

We expect first-quarter sales to have been impacted on account of exited businesses and product lines, and unfavorable currency movements.

The Zacks Consensus Estimate and our model estimate for CSCA sales are pegged at $657 million and $638 million, respectively. The Zacks Consensus Estimate and our model estimate for sales in the CSCI segment are pegged at $432 million and $434 million, respectively.

We expect Perrigo to provide an update on the expectedimpact of macroeconomic pressures in the upcoming quarters.

PRGO’s Earnings Surprise History

The company’s earnings performance has been decent over the trailing four quarters. Its earnings beat estimates in three of the last four quarters and missed the mark on one occasion, delivering an average surprise of 7.78%.

Perrigo’s shares have underperformed the industry year to date, as seen in the chart below.

Zacks Investment Research
Image Source: Zacks Investment Research

What Our Model Predicts for PRGO Stock

Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of delivering an earnings beat. This is exactly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Perrigo has an Earnings ESP of +2.37% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks With the Favorable Combination

Here are some other biotech stocks that have the right combination of elements to beat onearnings this reporting cycle:

CytomX Therapeutics (CTMX - Free Report) has an Earnings ESP of +38.89% and a Zacks Rank #1 at present.

CytomX Therapeutics’ shares have plunged 22% year to date. CytomXbeat on earnings in three of the trailing four quarters and missed in the other one, delivering an average surprise of 180.70%.

argenx (ARGX - Free Report) has an Earnings ESP of +10.92% and a Zacks Rank #3 at present.

argenx stock gained 6% in the year-to-date period. It beat on earnings in two of the last four quarters and missed in the other two, delivering an average surprise of 345.11%. ARGX is set to report earnings on May 8, before market open.

Novavax (NVAX - Free Report) has an Earnings ESP of +495.75% and a Zacks Rank #3 at present. NVAX is set to report earnings on May 8, before market open.

NVAX’s shares have lost 20% year to date. It beat estimates in two of the trailing four quarters and missed the mark on the other two occasions, delivering an average negative surprise of 0.48%.

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