The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Perrigo beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved.
Gross margins expanded, operating margins expanded, and net margins dropped.
Perrigo chalked up revenue of $838.2 million. The 13 analysts polled by S&P Capital IQ predicted revenue of $811.1 million. Sales were 17% higher than the prior-year quarter's $717.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.07. The 11 earnings estimates compiled by S&P Capital IQ forecast $1.15 per share on the same basis. GAAP EPS of $1.06 for Q2 were 10% higher than the prior-year quarter's $0.96 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 35.2%, 30 basis points better than the prior-year quarter. Operating margin was 19.2%, 70 basis points better than the prior-year quarter. Net margin was 11.9%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $836.5 million. On the bottom line, the average EPS estimate is $1.22.
Next year's average estimate for revenue is $3.23 billion. The average EPS estimate is $4.68.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 384 members out of 411 rating the stock outperform, and 27 members rating it underperform. Among 92 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give Perrigo a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Perrigo is hold, with an average price target of $102.64.
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