Overview

* Perrigo ( PRGO ) Q2 sales down 0.9% to $1.06 bln, missing analyst expectations

* Adjusted EPS of $0.57 missed estimates, despite a 7.5% year-over-year increase

* Company reaffirms full-year 2025 adjusted EPS target, but cautions on sales

Outlook

* Perrigo ( PRGO ) reaffirms full-year 2025 adj EPS target range of $2.90-$3.10

* Company expects reported net sales growth of 0% to 3% for 2025

* Perrigo ( PRGO ) sees organic net sales growth of 1.5% to 4.5% in 2025

* Says reported, organic net sales growth expected towards lower end of guidance

* Company anticipates adjusted operating margin of approximately 15% for 2025

Result Drivers

* DIVESTITURES IMPACT - Net sales decline driven by divestitures and exited products, offsetting favorable currency translation

* INFANT FORMULA VARIABILITY - Adjusted operating income affected by production variability in infant formula, leading to increased product scrap

* CATEGORY PERFORMANCE - Growth in Pain & Sleep Aids and Upper Respiratory categories offset by declines in Digestive Health and Oral Care

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $1.06 $1.08

bln bln (3

Analysts

)

Q2 Miss $0.57 $0.59 (3

Adjusted Analysts

EPS )

Q2 EPS

Q2 Miss $135 mln $140.50

Adjusted mln (3

Operatin Analysts

g Income )

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the pharmaceuticals peer group is "buy"

* Wall Street's median 12-month price target for Perrigo Company PLC ( PRGO ) is $38.00, about 29.9% above its August 5 closing price of $26.62

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)