Perrigo (NYSE:PRGO) Releases Earnings Results, Beats Estimates By $0.09 EPS

Perrigo (NYSE:PRGO) announced its earnings results on Wednesday. The company reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.51 by $0.09, FiscalAI reports. Perrigo had a negative net margin of 43.27% and a positive return on equity of 12.39%. The firm had revenue of $988.60 million for the quarter, compared to analysts’ expectations of $984.80 million. During the same period in the prior year, the company earned $0.80 EPS. The business’s revenue was down 5.2% compared to the same quarter last year.

Here are the key takeaways from Perrigo’s conference call:

• Sequential operating trends improved: Core sales declined 1.7% year over year, a narrower drop than in the first half, while core adjusted operating margin rose to 14.3% from 13.4% in Q2. Perrigo also gained 30 basis points of U.S. store-brand OTC share and 80 basis points across key European brands.
• Retailer inventory caution and European softness weighed on results and outlook. Management said retailers built less cough-and-cold inventory than expected and European demand remained weak; it lowered its 2026 sales outlook, while noting seasonal replenishment could fall in Q4 or Q1.
• Core adjusted operating margin fell 210 basis points year over year to 14.3%, and core adjusted EPS declined $0.06 to $0.61. Lower sales and unfavorable mix hurt results; a 3.5% adjusted tax rate, including a year-to-date catch-up, added about $0.10 to quarterly core EPS.
• The infant formula divestiture is expected to simplify the business, improve its margin profile, and reduce future capital needs. Perrigo expects to use proceeds in line with its capital priorities, including debt reduction, while continuing its review of oral care; its cost program delivered $42 million of savings year to date.

Perrigo Stock Up 1.5%

Shares of PRGO stock traded up $0.23 on Friday, hitting $15.94. The stock had a trading volume of 958,672 shares, compared to its average volume of 3,030,205. Perrigo has a one year low of $9.23 and a one year high of $16.81. The business has a 50 day moving average price of $14.93 and a 200 day moving average price of $12.49. The company has a market cap of $2.21 billion, a PE ratio of -1.24, a P/E/G ratio of 1.82 and a beta of 0.71. The company has a quick ratio of 1.32, a current ratio of 2.35 and a debt-to-equity ratio of 1.35.

Perrigo Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Friday, November 27th will be paid a dividend of $0.29 per share. The ex-dividend date is Friday, November 27th. This represents a $1.16 annualized dividend and a dividend yield of 7.3%. Perrigo’s dividend payout ratio (DPR) is currently -9.09%.

Analysts Set New Price Targets

PRGO has been the subject of a number of recent research reports. Zacks Research cut Perrigo from a “hold” rating to a “strong sell” rating in a report on Thursday, October 29th. Canaccord Genuity Group increased their price target on Perrigo from $17.00 to $19.00 and gave the company a “buy” rating in a report on Friday, October 30th. Wall Street Zen downgraded Perrigo from a “buy” rating to a “hold” rating in a research report on Saturday, October 31st. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Perrigo in a research note on Tuesday. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Reduce” and an average target price of $18.50.

Perrigo Company Profile

Perrigo Company plc is a global consumer self-care company that develops, manufactures and markets over-the-counter health products, wellness products and personal care items. Its portfolio includes products for allergy, pain relief, digestive health, skin care, smoking cessation, women’s health and other everyday health needs, along with vitamins, nutritional supplements and infant nutrition products.

Perrigo supplies products under its own brands, acquired brands and retailer-owned private-label labels.