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International Markets and Perrigo (PRGO): A Deep Dive for Investors

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Have you evaluated the performance of Perrigo's (PRGO - Free Report) international operations for the quarter ending June 2025? Given the extensive global presence of this drug company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

Our review of PRGO's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

The company's total revenue for the quarter amounted to $1.06 billion, marking a decrease of 0.9% from the year-ago quarter. We will next turn our attention to dissecting PRGO's international revenue to get a clearer picture of how significant its operations are outside its main base.

Exploring PRGO's International Revenue Patterns

Of the total revenue, $23.7 million came from All other countries during the last fiscal quarter, accounting for 2.2%. This represented a surprise of -14.75% as analysts had expected the region to contribute $27.8 million to the total revenue. In comparison, the region contributed $22.3 million, or 2.1%, and $29.3 million, or 2.8%, to total revenue in the previous and year-ago quarters, respectively.

Europe generated $421.7 million in revenues for the company in the last quarter, constituting 39.9% of the total. This represented a surprise of +5.84% compared to the $398.44 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $412.3 million (39.5%), and in the year-ago quarter, it contributed $408.4 million (38.3%) to the total revenue.

Revenue Forecasts for the International Markets

Wall Street analysts expect Perrigo to report a total revenue of $1.12 billion in the current fiscal quarter, which suggests an increase of 3% from the prior-year quarter. Revenue shares from All other countries and Europe are predicted to be 2.5%, and 36.3%, corresponding to amounts of $28.15 million, and $406.56 million, respectively.

For the full year, a total revenue of $4.44 billion is expected for the company, reflecting an increase of 1.6% from the year before. The revenues from All other countries and Europe are expected to make up 2.4%, and 37.1% of this total, corresponding to $106.64 million, and $1.65 billion, respectively.

Final Thoughts

Perrigo's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.

At present, Perrigo holds a Zacks Rank #2 (Buy). This ranking implies that its near-term performance might beat the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

A Review of Perrigo's Recent Stock Market Performance

The stock has declined by 18.1% over the past month compared to the 2.7% increase of the Zacks S&P 500 composite. Meanwhile, the Zacks Medical sector, which includes Perrigo,has decreased 3.3% during this time frame. Over the past three months, the company's shares have experienced a loss of 16.6% relative to the S&P 500's 13.2% increase. Throughout this period, the sector overall has witnessed a 1.8% decrease.


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