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.”
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