Perrigo Reports Q3 Loss, EPS Declines Amid Revenue Drop

Perrigo Company plc's Q3 report reveals a significant loss with an EPS drop from the prior year, raising concerns about future performance. Revenue also decreased compared to the same period last year, indicating potential challenges in meeting market expectations.

Date: 06-11-2024

AI Rating: 4

Perrigo Company plc has reported its Q3 earnings results, highlighting several key issues that could have a direct impact on its stock performance.

Earnings Loss: The company posted a net loss of $21.0 million in Q3, compared to a net income of $14.2 million in the same quarter of the previous year. This significant drop in earnings is strongly negative and could lead to a loss of investor confidence.
EPS Decline: Perrigo's earnings per share (EPS) fell to -$0.15 from $0.10 year-over-year, indicating a deterioration in profitability. This negative trend in EPS may deter potential investors and affect stock prices adversely.
Adjusted Earnings: Excluding certain items, the adjusted earnings were reported at $111.6 million or $0.81 per share. While the adjusted EPS met analysts' expectations, the negative net income could overshadow this figure and influence market perceptions.
Revenue Reduction: The Q3 revenue came in at $1.087 billion, down from $1.123 billion in the same period last year. This decline in revenue growth is concerning and could signal ongoing challenges for the company in maintaining sales momentum.
Full Year EPS Guidance: Although Perrigo provided a full-year EPS guidance of $2.50 to $2.65, the overall negative outlook from the recent quarter might lead investors to view this guidance skeptically, potentially impacting stock valuation.

In summary, the combination of a net loss, declining EPS, and reduced revenue suggests a challenging environment for Perrigo, which could impact investor sentiment and stock performance negatively.

Stocks: PRGO