We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Perrigo Beats on Q2 Earnings & Sales, Stock Down on '25 Sales View Cut
Read MoreHide Full Article
Key Takeaways
{\"0\":\"PRGO posted Q2 EPS of $0.57, up 7.5% but below estimates; sales dropped 0.9% to $1.06B.\",\"1\":\"Sales fell due to exited businesses and weak segments, despite gains from currency tailwinds.\",\"2\":\"PRGO cut 2025 sales view, citing infant formula and demand headwinds; EPS guidance remains intact.\"}
Perrigo (PRGO - Free Report) reported adjusted earnings of 57 cents per share in the second quarter of 2025, missing the Zacks Consensus Estimate of 59 cents. The reported figure increased 7.5% year over year, primarily driven by lower interest expenses.
Net sales declined 0.9% year over year to $1.06 billion, missing the Zacks Consensus Estimate of $1.08 billion. The downside was due to the loss of sales stemming from exited businesses and product lines, partially offset by favorable currency movements.
During the quarter, sales dropped 2.5% year over year on account of exited businesses and product lines, but benefited by 1.7% from favorable currency impact. At constant currency (excluding foreign currency translation), sales fell 2.6%. Organic net sales (excluding the effects of acquisitions and divestitures and the impact of currency) declined 0.1%.
More on PRGO’s Earnings
Perrigo reports its results under the following segments: Consumer Self Care Americas (CSCA) and Consumer Self Care International (CSCI).
CSCA: The segment’s net sales in the quarter came in at $622 million, down 1.9% year over year. Though sales grew across the Nutrition, Healthy Lifestyle and Upper Respiratory categories, they were more than offset by lower sales in the Digestive Health and Oral Care categories. Organic net sales also declined 1.9%. The reported segment sales missed the Zacks Consensus Estimate of $636 million and our model estimate of $641 million.
CSCI: The segment reported net sales of $434 million, up 0.7% from the year-ago period’s levels due to favorable currency translation and organic sales growth. This growth was partially offset by the negative impact from divested businesses and exited product lines. At constant currency rates, sales were down 3.5% year over year. Organically, sales increased 2.7%. Yet, CSCI sales missed both the Zacks Consensus Estimate and our model estimate of $445 million and $439 million, respectively.
PRGO’s 2025 Guidance
Perrigo lowered its financial guidance for total sales this year, primarily due to infant formula industry dynamics and challenging market consumption trends. As a result, it now expects sales to increase toward the lower end of its previously issued guided range of 0-3%. This revision was likely the reason for the 6% decline in the company’s stock price during pre-market trading today.
Year to date, shares of Perrigo have gained 4% compared with the industry’s 5% growth.
Image Source: Zacks Investment Research
While PRGO expects tariffs to raise costs, especially in its Oral Care segment that relies heavily on Chinese sourcing, it believes the impact will be manageable. With 85% of its finished goods produced in the United States, the company plans to offset most of the pressure through price adjustments, shifting production to domestic facilities and other supply-chain strategies.
Despite a downward revision in the top line, Perrigo reiterated all other 2025 financial targets, including an adjusted EPS range of $2.90-$3.10, an adjusted gross margin of around 40% and adjusted operating margin near 15%.
Estimates for CorMedix’s 2025 EPS have increased from 93 cents to 97 cents over the past 60 days, while the same for 2026 has increased from $1.64 to $1.65. CRMD shares have surged 49% year to date.
CorMedix’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 25.82%.
Estimates for Genmab’s 2025 EPS have increased from $1.51 to $1.58 over the past 60 days, while the same for 2026 has increased from $1.83 to $1.93. GMAB shares have gained 6% year to date.
Genmab’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average surprise of 14.90%.
In the past 60 days, estimates for Immunocore’s 2025 loss per share have improved from 86 cents to 68 cents. During the same timeframe, estimates for 2026 loss per share have narrowed from $1.34 to $1.10. IMCR stock has gained 10% so far this year.
Immunocore’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 76.18%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Perrigo Beats on Q2 Earnings & Sales, Stock Down on '25 Sales View Cut
Key Takeaways
Perrigo (PRGO - Free Report) reported adjusted earnings of 57 cents per share in the second quarter of 2025, missing the Zacks Consensus Estimate of 59 cents. The reported figure increased 7.5% year over year, primarily driven by lower interest expenses.
Net sales declined 0.9% year over year to $1.06 billion, missing the Zacks Consensus Estimate of $1.08 billion. The downside was due to the loss of sales stemming from exited businesses and product lines, partially offset by favorable currency movements.
During the quarter, sales dropped 2.5% year over year on account of exited businesses and product lines, but benefited by 1.7% from favorable currency impact. At constant currency (excluding foreign currency translation), sales fell 2.6%. Organic net sales (excluding the effects of acquisitions and divestitures and the impact of currency) declined 0.1%.
More on PRGO’s Earnings
Perrigo reports its results under the following segments: Consumer Self Care Americas (CSCA) and Consumer Self Care International (CSCI).
CSCA: The segment’s net sales in the quarter came in at $622 million, down 1.9% year over year. Though sales grew across the Nutrition, Healthy Lifestyle and Upper Respiratory categories, they were more than offset by lower sales in the Digestive Health and Oral Care categories. Organic net sales also declined 1.9%. The reported segment sales missed the Zacks Consensus Estimate of $636 million and our model estimate of $641 million.
CSCI: The segment reported net sales of $434 million, up 0.7% from the year-ago period’s levels due to favorable currency translation and organic sales growth. This growth was partially offset by the negative impact from divested businesses and exited product lines. At constant currency rates, sales were down 3.5% year over year. Organically, sales increased 2.7%. Yet, CSCI sales missed both the Zacks Consensus Estimate and our model estimate of $445 million and $439 million, respectively.
PRGO’s 2025 Guidance
Perrigo lowered its financial guidance for total sales this year, primarily due to infant formula industry dynamics and challenging market consumption trends. As a result, it now expects sales to increase toward the lower end of its previously issued guided range of 0-3%. This revision was likely the reason for the 6% decline in the company’s stock price during pre-market trading today.
Year to date, shares of Perrigo have gained 4% compared with the industry’s 5% growth.
Image Source: Zacks Investment Research
While PRGO expects tariffs to raise costs, especially in its Oral Care segment that relies heavily on Chinese sourcing, it believes the impact will be manageable. With 85% of its finished goods produced in the United States, the company plans to offset most of the pressure through price adjustments, shifting production to domestic facilities and other supply-chain strategies.
Despite a downward revision in the top line, Perrigo reiterated all other 2025 financial targets, including an adjusted EPS range of $2.90-$3.10, an adjusted gross margin of around 40% and adjusted operating margin near 15%.
PRGO’s Zacks Rank
Perrigo currently has a Zacks Rank #2 (Buy).
Perrigo Company plc Price
Perrigo Company plc price | Perrigo Company plc Quote
Other Key Picks Among Biotech Stocks
Some other top-ranked stocks from the industry are CorMedix (CRMD - Free Report) , Genmab (GMAB - Free Report) and Immunocore (IMCR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for CorMedix’s 2025 EPS have increased from 93 cents to 97 cents over the past 60 days, while the same for 2026 has increased from $1.64 to $1.65. CRMD shares have surged 49% year to date.
CorMedix’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 25.82%.
Estimates for Genmab’s 2025 EPS have increased from $1.51 to $1.58 over the past 60 days, while the same for 2026 has increased from $1.83 to $1.93. GMAB shares have gained 6% year to date.
Genmab’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average surprise of 14.90%.
In the past 60 days, estimates for Immunocore’s 2025 loss per share have improved from 86 cents to 68 cents. During the same timeframe, estimates for 2026 loss per share have narrowed from $1.34 to $1.10. IMCR stock has gained 10% so far this year.
Immunocore’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 76.18%.