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Perrigo (PRGO) Q1 Earnings Miss Estimates, Revenues In Line

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Perrigo Company plc PRGO reported first-quarter 2021 adjusted earnings of 50 cents per share, which missed the Zacks Consensus Estimate of 56 cents. Earnings decreased 25.4% year over year.

Net sales decreased 6.8% year over year to $1.01 billion and came in line with the Zacks Consensus Estimate. The year-over-year decline was due to lower worldwide net sales of cough/cold products. Sales in the year-ago quarter had benefited from pandemic-related customer stocking. Organic net sales were down 10.9% year over year.

Shares of Perrigo have declined 3.6% so far this year against the industry’s increase of 5%.

Segment Discussion

Perrigo reports its results under the following segments — Consumer Self Care Americas (“CSCA”) and Consumer Self Care International (“CSCI”). Please note that the company has signed an agreement to divest its generic Rx Pharmaceuticals business to Altaris Capital Partners in March that is expected by the end of the third quarter of 2021. The company now reports financial results from the generic Rx pharmaceuticals business as discontinued operations.

CSCA: Net sales of the segment in the first quarter of 2021 came in at $641 million, down 8.6% year over year. Sales decreased as COVID-19 negatively impacted sales of cough/cold products. However, decline in these segments was partially offset by new product sales, sales of products added with Dr. Fresh acquisition, and higher sales in Digestive Health category and Skincare &Personal Hygiene category.

Net sales at CSCA decreased approximately 11.8%, organically.

CSCI: The segment reported net sales of $370 million, down 3.4% from the year-ago period. Sales declined in the CSCI segment as COVID-19 hampered sales of cough/cold, skincare & personal hygiene products. Divested businesses hurt sales by $14 million. However, $26 million in favorable currency movements, higher sales from new products, pain and VMS categories provided some respite. Organic sales decreased 9.1%.

2021 Guidance Intact

Perrigo reiterated its previous guidance for 2021. The company expects to deliver organic net sales growth of 3% in 2021. It expects adjusted earnings to increase approximately 7% and be in the range of $2.50 to $2.70.

Perrigo Company plc Price, Consensus and EPS Surprise

Perrigo Company plc Price, Consensus and EPS Surprise
Perrigo Company plc Price, Consensus and EPS Surprise

Perrigo Company plc price-consensus-eps-surprise-chart | Perrigo Company plc Quote

Zacks Rank and Stocks to Consider

Currently, Perrigo carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the pharma/biotech sector include Adaptive Biotechnologies Corporation ADPT, Repligen Corporation RGEN and BioNTech SE BNTX. While Repligen and BioNTech sport a Zacks Rank #1 (Strong Buy), Adaptive carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Adaptive’s loss per share estimates have narrowed from $1.79 to $1.65 for 2021 and from $1.28 to $1.26 over the past 30 days. The company delivered an earnings surprise of 9.04%, on average, in the last four quarters.

Repligen’s earnings estimates have been revised upward from $1.91 to $2.21 for 2021 and from $2.23 to $2.53 over the past 30 days. The company delivered an earnings surprise of 54.69%, on average, in the last four quarters.

BioNTech’s earnings per share estimates have increased from $17.95 to $21.49 for 2021 and from $5.02 to $7.55 over the past 30 days. The company delivered an earnings surprise of 70.52%, on average, in the last four quarters.

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