Perrigo (PRGO) Tops Q3 EPS by 8c, Revenues Miss; Offers FY18 EPS/Revenue Guidance Below Consensus

Perrigo (NYSE: PRGO) reported Q3 EPS of $1.09, $0.08 better than the analyst estimate of $1.01. Revenue for the quarter came in at $1.13 billion versus the consensus estimate of $1.16 billion.

• Realized third quarter 2018 GAAP ("reported") net sales of $1.1 billion, reported net loss of $68 million compared to a net income of $45 million last year and reported diluted loss per share of $0.49 compared to net earnings per share ("EPS") of $0.31 last year
• Adjusted third quarter net income of $150 million compared to $197 million last year and adjusted diluted EPS of $1.09 versus $1.39 last year
• Worldwide Consumer businesses net sales decreased approximately 1% on a reported basis year over year; net sales grew approximately 2% year over year on an organic constant currency basis, excluding the animal health business
• CHC Americas segment achieved third quarter net sales of $596 million, flat versus last year on a constant currency basis; CHC Americas grew approximately 3% excluding the animal health business
• CHC International segment realized third quarter net sales of $358 million, a decrease of 2% versus last year; net sales increased 1% versus last year on an organic constant currency basis
• CHC International segment reported third quarter operating margin of (0.6)%; delivered adjusted operating margin of 18.7%
• RX segment realized third quarter net sales of $179 million; Sharon Kochan, who led the Perrigo RX business from 2005-2012, appointed EVP and President of the RX business
• Third quarter cash flow from operations was $144 million, representing approximately 96% conversion to adjusted net income
• Repurchased approximately 1.8 million shares for approximately $135 million in the quarter; Board of Directors has approved a new share repurchase authorization of up to $1 billion

• The Company now expects calendar year 2018 reported diluted EPS to be in the range of $0.66 to $0.86; calendar year 2018 adjusted diluted EPS in the range of to $4.45 to $4.65 primarily due to revised expectations for the RX segment; see Guidance section below for details

GUIDANCE:

Perrigo sees FY2018 EPS of $4.45-$4.65, versus the consensus of $4.86.

Perrigo sees FY2018 Revenues pof $.72 billion versus the consensus of $4.85 billion.

For earnings history and earnings-related data on Perrigo (PRGO) click here.

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