It has been about a month since the last earnings report for Perrigo (PRGO Quick QuotePRGO - Free Report) . Shares have lost about 9.7% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Perrigo due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Perrigo Company plc before we dive into how investors and analysts have reacted as of late.

Q3 Earnings Beat, Sales Miss Estimates

Perrigo reported adjusted earnings of 80 cents per share in the third quarter of 2025, beating the Zacks Consensus Estimate of 75 cents. The reported figure fell 1.2% year over year, attributable to lower sales volume during the quarter.

Net sales declined 4.1% year over year to $1.04 billion, missing the Zacks Consensus Estimate of $1.10 billion. The downside was due to the soft sales performance of its infant formula and oral care businesses, as well as the loss of sales stemming from exited businesses and product lines, partially offset by favorable currency movements.

During the quarter, sales dropped 1.3% year over year on account of exited businesses and product lines, but benefited by 1.6% from favorable currency movements. At constant currency (excluding foreign currency translation), sales fell 5.7%. Organic net sales (excluding the effects of acquisitions and divestitures and the impact of currency) declined 4.4%.

Segment Discussion

CSCA: The segment’s net sales in the quarter came in at $646 million, down 3.8% year over year. Though sales grew across the Upper Respiratory, Skin Care and Women’s Health categories, they were more than offset by lower sales in the Infant Formula and Oral Care businesses. Organic net sales also declined 3.8%. The reported segment sales missed the Zacks Consensus Estimate of $664 million and our model estimate of $676 million.

CSCI: The segment reported net sales of $398 million, down 4.5% from the year-ago period’s levels due to soft sales performance of its Upper Respiratory, VMS (Vitamins, Minerals and Supplements) and Women's Health categories. This decline was partially offset by favorable currency movements during the quarter. At constant currency rates, sales were down 8.7% year over year. Organically, sales declined 5.3%. CSCI sales missed both the Zacks Consensus Estimate and our model estimate of $432 million and $429 million, respectively.

2025 Guidance

Perrigo lowered its financial guidance for total sales this year, primarily due to infant formula industry dynamics and challenging market consumption trends. As a result, the company now expects sales to decline by 2.5-3.0% against the previously issued guidance of growth in sales toward the lower end of 0-3%.

Perrigo also lowered some of its other 2025 financial targets, including an adjusted EPS range of $2.70 to $2.80 (previously: $2.90-$3.10) and an adjusted gross margin of around 39% (previously: 40%). The company reiterated its guidance for adjusted operating margin near 15%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -20.59% due to these changes.

VGM Scores

Currently, Perrigo has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Perrigo has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Perrigo is part of the Zacks Medical - Products industry. Over the past month, Baxter International (BAX Quick QuoteBAX - Free Report) , a stock from the same industry, has gained 2.8%. The company reported its results for the quarter ended September 2025 more than a month ago.

Baxter reported revenues of $2.84 billion in the last reported quarter, representing a year-over-year change of +5%. EPS of $0.69 for the same period compares with $0.80 a year ago.

Baxter is expected to post earnings of $0.53 per share for the current quarter, representing a year-over-year change of -8.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.

Baxter has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.