Perrigo Company Earnings Preview

Watch Perrigo Company's (Nasdaq: PRGO  ) earnings report to see if it can beat analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Tuesday, August 16. Perrigo Company is a global healthcare supplier which develops, manufactures, and distributes over-the-counter and generic prescription pharmaceuticals, nutritional products, active pharmaceutical ingredients, and pharmaceutical and medical diagnostic products.

What analysts say:

  • Buy, sell, or hold?: The majority of analysts back Perrigo Company as a buy. However, with 62.5% of analysts rating it a buy, Perrigo Company is still below the mean analyst rating of its nearest 10 competitors, which average 73.7% buys. Analysts don't like Perrigo Company as much as competitor Mylan Laboratories overall. Out of 18 analysts, 13 rate Mylan Laboratories a buy, compared to 10 of 16 for Perrigo Company.
  • Revenue forecasts: On average, analysts predict $707.9 million in revenue this quarter. That would represent a rise of 14.3% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.99 per share. Estimates range from $0.91 to $1.02.

What our community says:
CAPS All-Stars are solidly behind the stock with 96% awarding it an "outperform" rating. The community at large agrees with the All-Stars, with 94.2% granting it a rating of "outperform." Fools are gung-ho about Perrigo Company and haven't been shy with their opinions lately, logging 113 posts in the past 30 days. Despite the majority sentiment in favor of Perrigo Company, the stock has a middling CAPS rating of three out of five stars.

Management:
Perrigo Company's profit has risen year over year by an average of 46.3% over the past five quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q3

Q2

Q1

Q4

Gross Margin

34.6%

34.8%

33.4%

32.2%

Operating Margin

17.8%

18.4%

17.4%

12.5%

Net Margin

12.9%

12.6%

11.6%

8.0%

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