As a result, the stock closed down 12.6% today.
Perrigo, which sells unbranded over-the-counter medical products like acetaminophen as well as branded products like Prevacid, said that revenue in the second quarter was up 3.4% to $981.1 million, though that missed estimates at $1.02 billion.
Organic sales increased 0.5%, which included a 2.3% decline in cold/cough remedies due to the impact of social distancing.
On the bottom line, the company reported that adjusted earnings per share fell from $0.59 to $0.50 as it stepped up brand and marketing investments as the pandemic fades. That result missed expectations at $0.62, however.
Perrigo sold its generic drug business for $1.55 billion earlier this year to focus entirely on the consumer market, and management is standing by that strategy despite disappointing results in the quarter. CEO Murray Kessler said, "Self-care has never been more important and with our portfolio reconfiguration completed and the investments made in technology, capabilities, talent, and manufacturing capacity, as a pure-play consumer company Perrigo is in a great position to capitalize on this trend."
Looking ahead, the company reaffirmed its net sales guidance, calling for 3% growth for the year, but it said it now expects full-year EPS to come in closer to the lower end of its guidance at $2.50-$2.70. That, along with the weak second-quarter results, explains why the stock declined by double-digits today.