Shares of Perrigo Co. continued to slip Friday, a day after the maker of store brand over-the-counter drugs and infant formulas reported a fiscal 2013 forecast that left some analysts disappointed.
THE SPARK: The Allegan, Mich., company said it expects fiscal 2013 adjusted earnings of between $5.30 and $5.50 per share. Analyst expectations of $5.43 per share fall within that range, on average, according to FactSet.
Perrigo also said its fiscal fourth-quarter earnings climbed 25 percent to $107 million, or $1.14 per share, in the quarter that ended June 30. Adjusted earnings totaled $1.28 per share, which topped Wall Street expectations for $1.27 per share.
The company's revenue climbed 18 percent to $831.8 million, but that fell short of average expectations for $852.7 million.
THE BIG PICTURE: Perrigo's business segments include Consumer Healthcare, Rx Pharmaceuticals and Nutritionals.
THE ANALYSIS: The company's full-year 2013 earnings forecast fit with the consensus but "did not appear in lock-step with solid revenue growth expectations" related to Perrigo's previous outlook for 2013 through 2015, Stifel Nicolaus analyst Annabel Samimy said in a research note.
Samimy also wrote that the company remains well-positioned for growth in 2013 and beyond with product launches in key franchise and the potential for international expansion in Asia.
Canaccord analyst Randall Stanicky said in a separate note the 2013 guidance was disappointing, and Perrigo reported a "generally low quality quarter." But he added that he sees the possibility for guidance increases throughout the year "on what feels like conservative forecasts around new launches and operating margin expansion."
SHARE ACTION: Company shares fell $2.07, or 1.9 percent, to $106.86 in afternoon trading, while the Nasdaq exchange climbed slightly. Friday's decline for Perrigo shares followed a drop of nearly 7 percent Thursday after the company released earnings.
