Perrigo Misses Q4 Estimates As Omega Buyout Off To Shaky Start
Generic drugmaker Perrigo ( PRGO ) dipped in morning trading Thursday after its Q4 earnings missed estimates, with guidance also on the low side. Excluding one-time items, Perrigo made $1.80 a share in the quarter, down 1% from the year-earlier quarter and missing analysts’ consensus by 13 cents, according to Thomson Reuters. Revenue rose 33% to $1.43 billion, about $35 million below consensus. For the full year, EPS rose 21% to $7.59, while sales increased 28% to $5.35 billion. Perrigo guided 2016 earnings at $9.50 to $9.80 a share, compared with consensus of $9.74. The Q4 revenue gain came largely through the acquisition of European over-the-counter drugmaker Omega Pharma last March, supplemented by the buyout of some over-the-counter brands from GlaxoSmithKline ( GSK ) in August. This led Perrigo to create a new division called Branded Consumer Healthcare, but CEO Joseph Papa admitted that this unit was also responsible for the miss. “Although the segment did not meet our internal expectations, we are taking specific actions to address this performance,” Papa said in the company’s press release. Perrigo stock hit a 21-month low of 130.66 in early trading on the stock market today . By late morning, it was down 9%, near 132. The stock is 38% off its 52-week high, though last year it was pumped up by Mylan ‘s ( MYL ) ultimately unsuccessful takeover attempt. It retains a relatively high IBD Composite Rating of 79.