Perrigo Co. Plc's Stock Drops 14% Following Disappointing Q3 Sales
Perrigo Co. Plc's stock experiences a significant decline of 14% after disappointing Q3 sales and downward revision of guidance.
Dublin-based Perrigo Co. Plc's stock (PRGO) experienced a significant decline of 14% in early trading on Tuesday. The consumer self-care and wellness products manufacturer reported weaker-than-expected sales for the third quarter, resulting in a downward revision of its guidance.
Perrigo achieved a net income of $14.2 million, or 10 cents per share, during the quarter. This is a significant improvement compared to a loss of $49.4 million, or 37 cents per share, recorded in the same period last year. Adjusted earnings per share came to 64 cents, slightly surpassing the FactSet consensus of 63 cents.
Despite the positive earnings per share, sales only grew by 2.2% to reach $1.1 billion. This figure fell just below the expected $1.2 billion FactSet consensus.
As a result of the underwhelming Q3 performance, Perrigo has revised its full-year guidance. The company now expects adjusted earnings per share to range between $2.50 and $2.60, compared to the initial forecast of $2.50 to $2.70. Additionally, sales growth is now projected to be between 4% and 6%, down from the previous estimate of 7% to 11%.
Perrigo's stock has experienced a 16% decline year-to-date. In contrast, the S&P 500 index has gained 13.7% over the same period.