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Perrigo (PRGO) to Report Q3 Earnings: What's in the Cards?
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Perrigo Company plc (PRGO - Free Report) will report third-quarter 2022 results on Nov 8, before market open. In the last reported quarter, the company reported a negative earnings surprise of 2.27%.
Perrigo’s shares have gained 0.9% this year against the industry’s decline of 47.2%.
Image Source: Zacks Investment Research
Perrigo’s earnings performance has been dismal over the trailing four quarters. The company’s earnings missed estimates in three of the last four quarters and beat the same once, reporting a negative earnings surprise of 11.83% on average.
Let’s see how things have shaped up for this announcement.
Factors at Play
In the third quarter, the performance of Perrigo’s Consumer Self Care Americas (“CSCA”) and Consumer Self Care International (“CSCI”) segments is expected to have been aided byproducts added through its HRA Pharma acquisition. Significant sales growth of new products is likely to have boosted sales further during the soon-to-be-reported quarter. However, currency movements are likely to have an unfavorable impact on the company’s international sales.
Sales of cough/cold products have demonstrated a strong recovery in recent quarters. The momentum is expected to have continued during the third quarter, boosting the top line.
Perrigo reported higher net price realization for its products during the second quarter. The improving price trend will likely be reflected in the company’s third-quarter sales, benefiting the top line. This increasing price is likely to partially offset cost headwinds (including the higher cost of goods sold), unfavorable currency movements and loss of sales in Russia and Ukraine, leading to lower operating margins.
Loss of sales due to discontinued products and the exited businesses might have partially offset the gain from the new products.
Investors are likely to ask questions about potential product launches next year. We also expect management to provide an update on the expected impact of currency movements and COVID-19 in 2023.
Earnings Whispers
Our proven model does not predict an earnings beat for Perrigo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Perrigo has an Earnings ESP of 0.00% as the Most Accurate Estimate and Zacks Consensus Estimate both stand at 66 cents per share.
Here are a few stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Arvinas (ARVN - Free Report) has an Earnings ESP of +13.85% and a Zacks Rank of 3.
Earnings of Arvinas missed estimates in each of the last four quarters, with a negative earnings of 57.95% on average. Shares of Arvinas have declined 44.6% this year so far.
In the last reported quarter, Arvinas’ earnings missed estimates and reported a negative earnings surprise of 29.41%.
Beam Therapeutics (BEAM - Free Report) has an Earnings ESP of +14.90% and a Zacks Rank #3.
Beam Therapeutics’stock has declined 46.3% this year so far. BEAM’s earnings topped estimates in each of the last four quarters, delivering a trailing four-quarter earnings surprise of 19.14%, on average.
In the last reported quarter, Beam Therapeutics’ earnings beat estimates and reported an earnings surprise of 5.56%.
Emergent BioSolutions (EBS - Free Report) has an Earnings ESP of +45.46% and a Zacks Rank #3.
Emergent BioSolutions’ stock has declined 54.1% this year so far. EBS’s earnings missed estimates in three of the last four quarters and missed the mark on one occasion, delivering a trailing four-quarter negative earnings surprise of 90.89%, on average.
In the last reported quarter, Emergent BioSolutions’ earnings missed estimates and reported a negative earnings surprise of 236.51%. Emergentis scheduled to release third-quarter 2022 results on Nov 8.
Image: Bigstock
Perrigo (PRGO) to Report Q3 Earnings: What's in the Cards?
Perrigo Company plc (PRGO - Free Report) will report third-quarter 2022 results on Nov 8, before market open. In the last reported quarter, the company reported a negative earnings surprise of 2.27%.
Perrigo’s shares have gained 0.9% this year against the industry’s decline of 47.2%.
Image Source: Zacks Investment Research
Perrigo’s earnings performance has been dismal over the trailing four quarters. The company’s earnings missed estimates in three of the last four quarters and beat the same once, reporting a negative earnings surprise of 11.83% on average.
Perrigo Company plc Price and Consensus
Perrigo Company plc price-consensus-chart | Perrigo Company plc Quote
Let’s see how things have shaped up for this announcement.
Factors at Play
In the third quarter, the performance of Perrigo’s Consumer Self Care Americas (“CSCA”) and Consumer Self Care International (“CSCI”) segments is expected to have been aided byproducts added through its HRA Pharma acquisition. Significant sales growth of new products is likely to have boosted sales further during the soon-to-be-reported quarter. However, currency movements are likely to have an unfavorable impact on the company’s international sales.
Sales of cough/cold products have demonstrated a strong recovery in recent quarters. The momentum is expected to have continued during the third quarter, boosting the top line.
Perrigo reported higher net price realization for its products during the second quarter. The improving price trend will likely be reflected in the company’s third-quarter sales, benefiting the top line. This increasing price is likely to partially offset cost headwinds (including the higher cost of goods sold), unfavorable currency movements and loss of sales in Russia and Ukraine, leading to lower operating margins.
Loss of sales due to discontinued products and the exited businesses might have partially offset the gain from the new products.
Investors are likely to ask questions about potential product launches next year. We also expect management to provide an update on the expected impact of currency movements and COVID-19 in 2023.
Earnings Whispers
Our proven model does not predict an earnings beat for Perrigo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Perrigo has an Earnings ESP of 0.00% as the Most Accurate Estimate and Zacks Consensus Estimate both stand at 66 cents per share.
Zacks Rank: Perrigo has a Zacks Rank #4 (Sell), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Arvinas (ARVN - Free Report) has an Earnings ESP of +13.85% and a Zacks Rank of 3.
Earnings of Arvinas missed estimates in each of the last four quarters, with a negative earnings of 57.95% on average. Shares of Arvinas have declined 44.6% this year so far.
In the last reported quarter, Arvinas’ earnings missed estimates and reported a negative earnings surprise of 29.41%.
Beam Therapeutics (BEAM - Free Report) has an Earnings ESP of +14.90% and a Zacks Rank #3.
Beam Therapeutics’stock has declined 46.3% this year so far. BEAM’s earnings topped estimates in each of the last four quarters, delivering a trailing four-quarter earnings surprise of 19.14%, on average.
In the last reported quarter, Beam Therapeutics’ earnings beat estimates and reported an earnings surprise of 5.56%.
Emergent BioSolutions (EBS - Free Report) has an Earnings ESP of +45.46% and a Zacks Rank #3.
Emergent BioSolutions’ stock has declined 54.1% this year so far. EBS’s earnings missed estimates in three of the last four quarters and missed the mark on one occasion, delivering a trailing four-quarter negative earnings surprise of 90.89%, on average.
In the last reported quarter, Emergent BioSolutions’ earnings missed estimates and reported a negative earnings surprise of 236.51%. Emergentis scheduled to release third-quarter 2022 results on Nov 8.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.