What happened

Drug company Perrigo (PRGO 0.90%) experienced quite a headache on Tuesday after it released its third-quarter report before the bell. Its stock took a real wallop, tumbling by more than 15%. Investors weren't happy about a fairly wide earnings miss, and were even more displeased by management's guidance cut.

So what

For the period, Perrigo booked total sales of $1.1 billion, which was nearly 6% higher on a year-over-year basis. Non-GAAP (adjusted) net income rose by almost 25% to $76 million, or $0.56 per share.

Sounding a somewhat self-congratulatory note, Perrigo CEO Murray Kessler said in the press release that the company's key metrics "grew substantially compared to prior year in the face of continued macro-economic headwinds."

"We gained market share globally, including increases across every segment as store brands continued to gain share from national brands," he added.

Perrigo has a wide range of products in its portfolio. Of these, the nutrition category was a particularly good performer, with net sales rising 18% to $124 million. The company chalked this up to strong sales of its baby formula.

Despite these achievements, neither headline figure beat the analysts' average estimate. Collectively, prognosticators following Perrigo stock were modeling for $1.14 billion on the top line, and $0.68 per share for adjusted net income.

Now what

What investors were more concerned with, more likely, was Perrigo's 2022 guidance. Although the company maintained its forecast for an 8.5% to 9.5% rise in total net sales compared to 2021, it trimmed its adjusted net profit estimate. It now believes it will earn between $2 per share and $2.10 per share, quite some distance down from its previous guidance range of $2.25 per share to $2.35 per share.