Drugmaker Perrigo misses Q2 sales estimates, cautions on FY forecast

Overview

• Perrigo Q2 sales down 0.9% to $1.06 bln, missing analyst expectations

• Adjusted EPS of $0.57 missed estimates, despite a 7.5% year-over-year increase

• Company reaffirms full-year 2025 adjusted EPS target, but cautions on sales

Outlook

• Perrigo reaffirms full-year 2025 adj EPS target range of $2.90-$3.10

• Company expects reported net sales growth of 0% to 3% for 2025

• Perrigo sees organic net sales growth of 1.5% to 4.5% in 2025

• Says reported, organic net sales growth expected towards lower end of guidance

• Company anticipates adjusted operating margin of approximately 15% for 2025

Result Drivers

• DIVESTITURES IMPACT - Net sales decline driven by divestitures and exited products, offsetting favorable currency translation

• INFANT FORMULA VARIABILITY - Adjusted operating income affected by production variability in infant formula, leading to increased product scrap

• CATEGORY PERFORMANCE - Growth in Pain & Sleep Aids and Upper Respiratory categories offset by declines in Digestive Health and Oral Care

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Perrigo Company PLC is $38.00, about 29.9% above its August 5 closing price of $26.62

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nPn3m0CNGa