Perrigo (NYSE:PRGO) Azioni

Perrigo

Perrigo Company

NASDAQ

Perrigo is one of the largest consumer health companies in the world. Since 2018, Perrigo divested its animal health and generic pharmaceuticals businesses to solely focus on consumer self-care. In North America (two thirds of total sales), the firm's product mix is anchored in private-label consumer health goods, which are sold to major retailers like Walmart, Amazon, Costco, and CVS. Perrigo also plays in Europe, Australia, and parts of Asia where it primarily generates revenue through its national brands, including Compeed, Solpadeine, Coldrex, and ellaOne.

Perrigo Co PLC

Perrigo Company plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRGO#NYSE">PRGO</a>) shares surged on Friday after the company issued financial targets for 2025 and <a target="_blank" href="https://www.benzinga.com/pressreleases/25/02/n44038938/perrigo-provides-detailed-plan-to-consumerize-simplify-and-scale-its-unique-global-self-care-platf" rel="noreferrer noopener">2025 to 2027 on its investor day</a>.
For 2025, the company expects:
<ul>
<li>Sales growth of 1% to 3% vs. consensus of $4.79 billion</li>
<li>Organic net sales growth of 2.5% to 4.5%</li>
<li>Adjusted EPS of $2.90 &#8211; $3.10 compared to the street view of $3.36</li>
<li>Adjusted operating margin of around 15%</li>
</ul>
For 2025-2027, Perrigo projects:
<ul>
<li>Organic net sales CAGR of 2.5% &#8211; 4.5%</li>
<li>Adjusted EPS CAGR of high-single to low-double-digit %</li>
<li>Adjusted operating margin expansion of +150 to +250 basis points by 2027</li>
</ul>
Apart from this, the company disclosed that its strategy to enhance cash flow and total shareholder return is centered around its &#8216;Three-S&#8217; plan:
<ul>
<li>&#8216;Stabilizing&#8217; the Consumer Self-Care Americas (CSCA) store brand and infant formula sectors</li>
<li>&#8216;Streamlining&#8217; the global portfolio, operational model, and Consumer Self-Care International (CSCI) business</li>
<li>&#8216;Strengthening&#8217; successful areas by focusing on and boosting investments in key &#8216;High-Grow&#8217; brands</li>
</ul>
On Thursday, the company reported fourth-quarter adjusted EPS of $0.93, slightly missing the $0.94 estimate, while sales of $1.14 billion fell <a target="_blank" href="https://www.benzinga.com/pressreleases/25/02/n44028429/perrigo-reports-fourth-quarter-fiscal-year-2024-financial-results-from-continuing-operations" rel="noreferrer noopener">short of the $1.20 billion estimate</a>.
President and CEO,&nbsp;Patrick Lockwood-Taylor&nbsp;said, &#8220;Though 2024 was a challenging year as we had to quickly overcome evolving regulatory dynamics within our infant formula business, we made substantial progress to rewire Perrigo through stabilizing our CSCA businesses, streamlining our operations and strengthening the Company for the long-term.&#8221;
Investors can gain exposure to the stock via SPDR S&amp;P Pharmaceuticals ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPH#NYSE">XPH</a>) and Bahl &amp; Gaynor Small/Mid Cap Income Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMIG#NYSE">SMIG</a>).
Price Action: PRGO shares are up 21.3% at $29.26 at the last check Friday.
Read Next:
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<li><a href="https://www.benzinga.com/24/12/42638844/large-biopharma-lags-market-jp-morgans-2025-outlook-on-eli-lilly-merck-and-more" target="_blank" rel="noreferrer noopener">Big Biopharma Trails Behind The Market: JP Morgan&#8217;s 2025 Outlook on Eli Lilly, Merck, and More</a></li>
</ul>
Image via Shutterstock.

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Perrigo Outlines 2025 Growth Plans, Projects Sales Boost And Margin Expansion By 2027

WIIM

Perrigo Company shares are trading higher after the company issued FY25 adjusted EPS guidance above estimates.

Fiscal Years 2025 to 2027 Financial Targets1,&nbsp;(fiscal year 2024 actuals as the baseline):
<ul>
<li>Organic net sales&nbsp;CAGR of 2.5% to 4.5%.</li>
<li>Adjusted gross margin expansion of +200 to +400 basis points by 2027.</li>
<li>Adjusted operating margin expansion of +150 to +250 basis points by 2027.</li>
<li>Adjusted diluted EPS CAGR of high-single to low-double digit percentage.</li>
<li>Operating cash flow conversion to adjusted net income of approximately 100% or more.</li>
<li>Free cash flow as a percentage of net sales of approximately +200 basis points by 2027.</li>
<li>Net leverage of less than 3x adjusted EBITDA in 2027.</li>
</ul>

Perrigo Co Projected FY25-FY27 Organic Net Sales CAGR Of 2.5%-4.5%, Adj EPS CAGR Of High-Single To Low-Double Digit Percentage

Fiscal Year 2025 Financial Targets1&nbsp;(fiscal year 2024 actuals as the baseline):
<ul>
<li>All-in net sales growth of 1% to 3%.</li>
<li>Organic net sales growth of 2.5% to 4.5%.</li>
<li>Adjusted gross margin of approximately 40%.</li>
<li>Adjusted operating margin of approximately 15%.</li>
<li>Adjusted diluted earnings per share ("EPS") range of $2.90 to $3.10, equating to growth of 13% to 21%.</li>
<li>Operating cash flow conversion to adjusted net income of approximately 100%.</li>
<li>Free cash flow as a percentage of net sales of approximately 6%.</li>
<li>Net leverage of approximately 3.5x adjusted EBITDA.&nbsp;</li>
</ul>
Fiscal Years 2025 to 2027 Financial Targets1,&nbsp;(fiscal year 2024 actuals as the baseline):
<ul>
<li>Organic net sales&nbsp;CAGR of 2.5% to 4.5%.</li>
<li>Adjusted gross margin expansion of +200 to +400 basis points by 2027.</li>
<li>Adjusted operating margin expansion of +150 to +250 basis points by 2027.</li>
<li>Adjusted diluted EPS CAGR of high-single to low-double digit percentage.</li>
<li>Operating cash flow conversion to adjusted net income of approximately 100% or more.</li>
<li>Free cash flow as a percentage of net sales of approximately +200 basis points by 2027.</li>
<li>Net leverage of less than 3x adjusted EBITDA in 2027.</li>
</ul>

Perrigo Co Expects FY25 Sales Growth Of 1%-3% Vs $4.79B Est, Adj EPS Of $2.90-$3.10 Vs $3.36 Est

Perrigo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRGO#NYSE">PRGO</a>) reported quarterly earnings of $0.93 per share which missed the analyst consensus estimate of $0.94 by 1.06 percent. This is a 8.14 percent increase over earnings of $0.86 per share from the same period last year. The company reported quarterly sales of $1.14 billion which missed the analyst consensus estimate of $1.20 billion by 4.82 percent. This is a 1.64 percent decrease over sales of $1.16 billion the same period last year.

Earnings

Earnings Misses

Perrigo Q4 2024 Adj EPS $0.93 Misses $0.94 Estimate, Sales $1.14B Miss $1.20B Estimate

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Earnings Scheduled For February 27, 2025

Perrigo Company plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRGO#NYSE">PRGO</a>), a leading global provider of Consumer Self-Care Products, today announced that its Board of Directors has approved a 5% increase in the Company's quarterly dividend to $0.290 per share, or $1.16 per share on an annual basis, up from $0.276 per share. This marks the 22nd consecutive year Perrigo has increased its dividend

Dividends

Perrigo Increases Quarterly Dividend From $0.276 To $0.29 Per Share

Piper Sandler analyst Korinne Wolfmeyer downgrades Perrigo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRGO#NYSE">PRGO</a>) from Overweight to Neutral and lowers the price target from $34 to $27.

Downgrades

Price Target

Analyst Ratings

Piper Sandler Downgrades Perrigo to Neutral, Lowers Price Target to $27

According to JP Morgan, U.S. large-cap biopharma stocks have underperformed the broader market for two consecutive years, with mixed sentiment shaping investor outlook for 2025.
Despite strong fundamentals and advancements in drug pipelines, factors such as political uncertainty and sector rotation have hindered the sector's performance relative to the S&amp;P 500.
In 2024, biopharma stocks rose by 9.6%, falling short of the S&amp;P 500's 28.5% surge. However, JP Morgan analysts maintain a positive outlook for several key players.
Eli Lilly And Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>), a top pick for the firm, is projected to see continued growth in its diabetes and obesity treatments, <a target="_blank" href="https://www.benzinga.com/general/biotech/24/10/41622207/eli-lilly-q3-earnings-mounjaro-sales-more-than-double-takes-2-98-billion-hit-to-profit-cuts-annua" rel="noreferrer noopener">Mounjaro and Zepbound</a>. The analyst also pointed to the company's robust pipeline and forecasted double-digit revenue and earnings growth into the 2030s.
Bristol-Myers Squibb (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMY#NYSE">BMY</a>) has been added to JP Morgan's Analyst Focus List due to the strong potential of its schizophrenia drug, Cobenfy, which could achieve peak sales of $10 billion.
Similarly, Merck &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRK#NYSE">MRK</a>) and Regeneron Pharmaceuticals Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/REGN#NASDAQ">REGN</a>) are expected to recover in 2025, following challenges in 2024 related to <a target="_blank" href="https://www.benzinga.com/general/biotech/24/04/38208816/eye-drug-eylea-price-manipulation-regeneron-faces-us-justice-department-allegations-over-medicare" rel="noreferrer noopener">competitive pressures </a>and regional dynamics <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40168774/mercks-blockbuster-vaccine-gardasil-sales-in-china-analyst-highlights-challenges-an" rel="noreferrer noopener">affecting key products</a>.
Gilead Sciences Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GILD#NASDAQ">GILD</a>) is poised for growth with the anticipated mid-2025 launch of lenacapavir <a target="_blank" href="https://www.benzinga.com/quote/GILD" rel="noreferrer noopener">for HIV prevention</a>.
The firm also highlighted AbbVie Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>) for its appealing valuation, supported by strong Skyrizi and Rinvoq sales despite fewer near-term <a target="_blank" href="https://www.benzinga.com/quote/ABBV" rel="noreferrer noopener">pipeline developments</a>.
Animal health stocks are also projected to rebound in 2025. JP Morgan views Zoetis Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZTS#NYSE">ZTS</a>) as the strongest pick in the sector, citing its potential for high single-digit revenue <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41722660/zoetis-q3-earnings-beat-companion-animal-segment-growth-gives-confidence-into-2025-" rel="noreferrer noopener">growth and margin expansion</a>. IDEXX Laboratories, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IDXX#NASDAQ">IDXX</a>) is another solid choice, though its performance depends on a r<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41659873/idexx-laboratories-adjusts-guidance-as-q3-revenue-growth-slows-analyst-notes-fewer-" rel="noreferrer noopener">ecovery in veterinary visits</a>. Meanwhile, Elanco Animal Health Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ELAN#NYSE">ELAN</a>) faces uncertainties linked to its <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41817807/elanco-animal-q3-earnings-profit-beat-new-products-and-stabilized-business-to-drive" rel="noreferrer noopener">new product launches</a>.
Specialty pharmaceuticals showed early signs of stabilization in 2024, benefiting from improved pricing stability and supply dynamics. Perrigo Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRGO#NYSE">PRGO</a>) and Viatris Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VTRS#NASDAQ">VTRS</a>) are highlighted as promising opportunities, while Teva Pharmaceuticals Industries Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TEVA#NYSE">TEVA</a>) may face growth challenges despite delivering strong clinical trial <a target="_blank" href="https://www.benzinga.com/general/biotech/24/12/42561832/teva-pharmaceutical-releases-impressive-phase-2-candidate-data-for-gastro-related-diseases" rel="noreferrer noopener">results this year</a>.
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Photo via Shutterstock

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Big Biopharma Trails Behind The Market: JP Morgan's 2025 Outlook on Eli Lilly, Merck, and More

Perrigo Reaches $98M Settlement With D&O Insurers To Resolve Coverage Dispute Over 2015-2017 Securities Litigation, Reimbursing Legal And Settlement Costs Before Year-End

Perrigo shares are trading higher. The company reported Q3 financial results.

The Company now expects its fiscal 2024 organic net sales and reported net sales outlooks towards the lower end of its previously stated ranges of organic net sales growth versus the prior year of -3% to -1% and reported net sales growth versus the prior year of -5% to -3%.&nbsp;

Perrigo Now Expects FY24 Organic Net Sales And Reported Net Sales Outlooks Towards Lower End Of Its Previously Stated Ranges

Perrigo Reaffirms FY24 Adjusted EPS Outlook Of $2.50 - $2.65, Est $2.57

Perrigo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRGO#NYSE">PRGO</a>) reported quarterly earnings of $0.81 per share which missed the analyst consensus estimate of $0.82 by 1.22 percent. This is a 26.56 percent increase over earnings of $0.64 per share from the same period last year. The company reported quarterly sales of $1.09 billion which missed the analyst consensus estimate of $1.13 billion by 3.29 percent. This is a 3.20 percent decrease over sales of $1.12 billion the same period last year.

Perrigo Q3 2024 Adj EPS $0.81 Misses $0.82 Estimate, Sales $1.09B Miss $1.13B Estimate

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Canaccord Genuity analyst Susan Anderson maintains Perrigo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRGO#NYSE">PRGO</a>) with a Buy and maintains $42 price target.

Canaccord Genuity Maintains Buy on Perrigo, Maintains $42 Price Target

Perrigo Company plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRGO#NYSE">PRGO</a>), a leading global provider of Consumer Self-Care Products, today announced a new brand partnership: Good Start&#xAE;1 and Dr. Brown's&#xAE;2 infant formula solutions. Good Start&#xAE;,&nbsp;a trusted infant formula brand for over 50 years, and Dr. Brown's&#xAE;, makers of the No. 1 pediatrician-recommended baby bottle in the U.S.3, share a long-time mission of creating confident feeding experiences for families.
The new Good Start&#xAE; &#x7C; Dr. Brown's&#x2122; portfolio will offer the same trusted infant formula products as the existing Soothe Pro&#x2122; and Gentle Pro&#x2122;, now with refreshed packaging to celebrate the launch of the new partnership. Good Start&#xAE; &#x7C; Dr. Brown's&#x2122; infant formulas offer complete nutrition specially formulated for tolerance concerns.

Perrigo Announces New Brand Partnership, Good Start And Dr. Browns Launch Of Infant Formula Portfolio

Jefferies analyst Keith Devas downgrades Perrigo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRGO#NYSE">PRGO</a>) from Buy to Hold and lowers the price target from $50 to $30.

Jefferies Downgrades Perrigo to Hold, Lowers Price Target to $30

JP Morgan notes that while there&#8217;s a resurgence of interest and excitement in new product launches within the specialty group, including branded and complex generics/biosimilars, investors should be discerning about these opportunities.
The group&#8217;s core fundamentals have strengthened, buoyed by a more stable environment for generic and established brand pricing, which helps mitigate the usual erosion in base business prices.
However, growth in the overall sector remains modest, with most companies experiencing a top-line compound annual growth rate (CAGR) of 0-2%.
Additionally, valuations have recovered, with most stocks now trading near their historical averages.
JP Morgan writes that Teva Pharmaceutical Industries Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TEVA#NYSE">TEVA</a>) continues to be the primary focus among investors in the group, with sentiment growing more bullish.
The analyst <a target="_blank" href="https://www.benzinga.com/quote/TEVA/analyst-ratings" rel="noreferrer noopener">maintains a Neutral rating</a>, as the market seems to have fully accounted for the company&#8217;s branded pipeline. Additionally, JP Morgan is cautious about Teva&#8217;s U.S. generic business compared to market expectations.
The analyst has given Viatris Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VTRS#NASDAQ">VTRS</a>) <a target="_blank" href="https://www.benzinga.com/quote/VTRS/analyst-ratings" rel="noreferrer noopener">a Neutral rating</a>, citing its stable fundamentals and low valuation amidst uncertainties in business development.
Meanwhile, JP Morgan holds a <a target="_blank" href="https://www.benzinga.com/quote/PRGO/analyst-ratings" rel="noreferrer noopener">more optimistic view</a>, an Overweight rating on Perrigo Co plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRGO#NYSE">PRGO</a>), noting the potential for earnings per share (EPS) to rebound to the low-mid $3 range soon due to currently low market sentiment. With shares currently trading at a significantly lower price than other consumer sector peers, the analyst believes there is substantial potential for an increase in valuation multiples as the recovery progresses.
Similarly, positive <a target="_blank" href="https://www.benzinga.com/quote/AMPH/analyst-ratings" rel="noreferrer noopener">prospects are seen</a> for Amphastar Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMPH#NASDAQ">AMPH</a>), where the analyst anticipates a promising series of catalysts leading into 2024/2025. Keeps Overweight rating.
JP Morgan is adjusting several ratings, which are relative to each other. The analyst has changed Amneal Pharmaceuticals, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMRX#NASDAQ">AMRX</a>) to <a target="_blank" href="https://www.benzinga.com/quote/AMRX/analyst-ratings" rel="noreferrer noopener">Neutral from Underweight</a> and Organon &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OGN#NYSE">OGN</a>) to <a target="_blank" href="https://www.benzinga.com/quote/OGN/analyst-ratings" rel="noreferrer noopener">Underweight from Neutral</a>.
For Amneal, the company&#8217;s success in launching new products suggests the potential for improved financial forecasts, which could bolster the stock.
Conversely, Organon&#8217;s stock price has increased 60% year-to-date. Although its valuation still appears low, the recent price surge suggests more attractive opportunities within the sector may exist.
Price Action: OGN stock is down 2.95% at $20.73, and AMRX stock is down 1.42% at $8.33 at last check Friday.
Photo via Shutterstock
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Reiteration

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JP Morgan Shows Most Interest In Teva, Organon As Specialty Pharma Sector Exhibits Signs Of Stability

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Press Releases

Perrigo Announces Quarterly Dividend

Perrigo Reports Third Quarter 2024 Financial Results From Continuing Operations

Perrigo Expands its Scientific Office; Appoints Abbie Lennox as Executive Vice President and Chief Scientific Officer

Perrigo to Release Fourth Quarter and Fiscal Year 2024 Financial Results on February 27, 2025, Host Virtual Investor Day on February 28, 2025

Opill® extends mission of breaking down birth control barriers with launch of multi-state college tour and expansion of partnerships

Perrigo Increases Quarterly Dividend by 5%

Perrigo to Attend the UBS 2025 Global Consumer and Retail Conference

Perrigo Reports Fourth Quarter & Fiscal Year 2024 Financial Results From Continuing Operations

Perrigo Provides Detailed Plan to Consumerize, Simplify and Scale its Unique Global Self-Care Platform at its Virtual Investor Day

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