Perrigo (PRGO) to Report Q2 Earnings: What's in the Cards?
Perrigo Company plc PRGO is scheduled to report second-quarter 2023 results on Aug 8, before the opening bell. In the last reported quarter, the company posted an earnings surprise of 7.14%.
Let’s see how things have shaped up for this announcement.
Factors at Play
During the second quarter, the performance of Perrigo’s Consumer Self Care Americas (“CSCA”) and Consumer Self Care International (“CSCI”) segments is expected to have been aided by products added through its HRA Pharma acquisition. Significant sales growth of new products is likely to have boosted sales in the soon-to-be-reported quarter. However, currency movements and loss of sales following the divestiture of Latin American businesses are likely to have affected the company’s ex-U.S. sales.
The Zacks Consensus Estimate and our model estimate for CSCA sales stand at $770 million and $775 million, respectively. For sales in the CSCI segment, the Zacks Consensus Estimate and our model estimate are pegged at $415 million and $411 million, respectively.
Higher demand for infant formula in the United States is also likely to have boosted the company’s top line in the to-be-reported quarter.
Perrigo reported higher net price realization for its products through strategic price increases in the last two quarters. The improving price trend will likely be reflected in second-quarter sales, benefiting the top line.
We expect macroeconomic factors like cost headwinds (including the higher cost of goods sold), the rising cost of capital and supply chain disruptionsin certain parts of the world amid the Russia-Ukraine war to have hurt the company’s operating margins.
Investors are likely to ask questions about potential product launches this year. We also expect management to provide an update on the expectedimpact of macroeconomic pressures in 2023.
Earnings Surprise History
Perrigo’s shares have gained 7.0% year to date compared with the industry’s 0.5% rise.
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Perrigo’s earnings performance has been mixed over the trailing four quarters. The company’s earnings missed estimates in two of the last four quarters and beat the mark on the other two occasions, registering a negative earnings surprise of 0.79% on average.
Perrigo Company plc Price and EPS Surprise
Perrigo Company plc price-eps-surprise | Perrigo Company plc Quote
Earnings Whispers
Our proven model does not predict an earnings beat for Perrigo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not thecase here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Perrigo has an Earnings ESP of -4.67% as the Most Accurate Estimate of 51 cents per share is lower than the Zacks Consensus Estimate of 54 cents.
Zacks Rank: Perrigo currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Caribou Biosciences CRBU has an Earnings ESP of +5.64% and a Zacks Rank #2.
Caribou Biosciences’ stock has gained 7.0% in the year-to-date period. CRBU beat earnings estimates in three of the last four quarters while missing the mark on one occasion. Caribou Biosciences has delivered a negative earnings surprise of 1.36%, on average.
bluebird bio BLUE has an EarningsESP of +9.16% and a Zacks Rank #3.
Shares of bluebird biohave declined 43.9% in the year-to-date period. Earnings of bluebird biobeat estimates in each of the last four quarters, witnessing a trailing four-quarter positive earnings surprise of 88.25%, on average. bluebird bio is scheduled to release second-quarter results on Aug 8, before the opening bell.
Novavax NVAX has an Earnings ESP of +67.61% and a Zacks Rank #3.
In the year so far, Novavax’s stock has lost 21.6%. Novavax’s earnings missed estimates in each of the last four quarters, delivering a trailing four-quarter earnings surprise of 141.13%, on average. Novavax is scheduled to release second-quarter results on Aug 8, before the opening bell.
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Perrigo Company plc (PRGO) : Free Stock Analysis Report
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