Perrigo Company plc ( PRGO ) shares surged on Friday after the company issued financial targets for 2025 and 2025 to 2027 on its investor day.

For 2025, the company expects:

Sales growth of 1% to 3% vs. consensus of $4.79 billion

Organic net sales growth of 2.5% to 4.5%

Adjusted EPS of $2.90 – $3.10 compared to the street view of $3.36

Adjusted operating margin of around 15%

For 2025-2027, Perrigo ( PRGO ) projects:

Organic net sales CAGR of 2.5% – 4.5%

Adjusted EPS CAGR of high-single to low-double-digit %

Adjusted operating margin expansion of +150 to +250 basis points by 2027

Apart from this, the company disclosed that its strategy to enhance cash flow and total shareholder return is centered around its ‘Three-S’ plan:

‘Stabilizing’ the Consumer Self-Care Americas (CSCA) store brand and infant formula sectors

‘Streamlining’ the global portfolio, operational model, and Consumer Self-Care International (CSCI) business

‘Strengthening’ successful areas by focusing on and boosting investments in key ‘High-Grow’ brands

On Thursday, the company reported fourth-quarter adjusted EPS of $0.93, slightly missing the $0.94 estimate, while sales of $1.14 billion fell short of the $1.20 billion estimate.

President and CEO, Patrick Lockwood-Taylor said, “Though 2024 was a challenging year as we had to quickly overcome evolving regulatory dynamics within our infant formula business, we made substantial progress to rewire Perrigo ( PRGO ) through stabilizing our CSCA businesses, streamlining our operations and strengthening the Company for the long-term.”

Investors can gain exposure to the stock via SPDR S&P Pharmaceuticals ETF ( XPH ) and Bahl & Gaynor Small/Mid Cap Income Growth ETF ( SMIG ) .

Price Action: PRGO shares are up 21.3% at $29.26 at the last check Friday.

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