Drugmaker Perrigo misses Q2 sales estimates, cautions on FY forecast

Perrigo

06/08/2025 11:45

Overview

Perrigo Q2 sales down 0.9% to $1.06 bln, missing analyst expectations

Adjusted EPS of $0.57 missed estimates, despite a 7.5% year-over-year increase

Company reaffirms full-year 2025 adjusted EPS target, but cautions on sales

Outlook

Perrigo reaffirms full-year 2025 adj EPS target range of $2.90-$3.10

Company expects reported net sales growth of 0% to 3% for 2025

Perrigo sees organic net sales growth of 1.5% to 4.5% in 2025

Says reported, organic net sales growth expected towards lower end of guidance

Company anticipates adjusted operating margin of approximately 15% for 2025

Result Drivers

DIVESTITURES IMPACT - Net sales decline driven by divestitures and exited products, offsetting favorable currency translation

INFANT FORMULA VARIABILITY - Adjusted operating income affected by production variability in infant formula, leading to increased product scrap

CATEGORY PERFORMANCE - Growth in Pain & Sleep Aids and Upper Respiratory categories offset by declines in Digestive Health and Oral Care

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$1.06 bln
$1.08 bln (3 Analysts)
Q2 Adjusted EPS
Miss
$0.57
$0.59 (3 Analysts)
Q2 EPS
Q2 Adjusted Operating Income
Miss
$135 mln
$140.50 mln (3 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the pharmaceuticals peer group is "buy"

Wall Street's median 12-month price target for Perrigo Company PLC is $38.00, about 29.9% above its August 5 closing price of $26.62

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nPn3m0CNGa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)