Perrigo Earnings: Here’s Why Investors are Not Happy Now

Perrigo Co. (NASDAQ:PRGO) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.50%.

Perrigo Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 22.66% to $1.57 in the quarter versus EPS of $1.28 in the year-earlier quarter.

Revenue: Rose 16.28% to $967.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Perrigo Co. reported adjusted EPS income of $1.57 per share. By that measure, the company beat the mean analyst estimate of $1.56. It missed the average revenue estimate of $999.08 million.

Quoting Management: Perrigo’s Chairman and CEO Joseph C. Papa commented, “I am pleased to report that Perrigo has delivered year-over-year record sales and adjusted earnings for the seventh straight fiscal year. This was a strong quarter where we continued to successfully drive growth across our segments, while managing costs to generate record bottom-line performance. We are continuing to execute on our growth strategy, invest in our future and drive shareholder returns. With this backdrop, on July 29th, we announced a definitive agreement to acquire Elan Corporation, which will combine two great companies to create value for our respective shareholders, patients and customers. The increased revenue stream and cash flow, combined with a more efficient corporate structure, will enable us to be more competitive and to better utilize our platform for future expansion. We are planning for integration and are employing a collaborative process with the Elan team. Additionally, we are actively working with regulators to receive approvals and clearances for the transaction, and expect to close by the end of calendar year 2013.”

Key Stats (on next page)…

Revenue increased 5.15% from $919.83 million in the previous quarter. EPS increased 10.56% from $1.42 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.47 to a profit $1.52. For the current year, the average estimate has moved down from a profit of $5.62 to a profit of $5.6 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , , ,  

More from The Cheat Sheet