Perrigo Co. Shares Surge 12% After Q2 Profit, Revenue Beats

By Emma CourtMarketsMarketWatch Pulse

Perrigo Co. PLC shares surged 12.2% in premarket trade Thursday after the company reported second-quarter profit and revenue beats and raised its 2017 guidance. The company reported a loss of $69.9 million, or a loss of 49 cents per share, narrowing a loss of $534.3 million, or a loss of $3.73 per share in the year-earlier period. Adjusted earnings-per-share were $1.22, compared with the FactSet consensus of 92 cents. Revenue rose to $1.238 billion from $1.341 billion, compared with the FactSet consensus of $1.175 billion. Perrigo now expects 2017 EPS between 84 cents and $1.09, compared with the FactSet consensus of $1.58, and adjusted 2017 EPS between $4.45 and $4.70, above the FactSet consensus of $4.28. Though other generic drugmakers have been facing pricing challenges, Perrigo's consumer business "essentially front-of-the-house [over-the-counter] products in private-label (US) and branded (ex-US) presentations showed particular strength this quarter, driven by private-label launches in the U.S. and strong performance in Mexico," Canaccord Genuity analyst Dewey Steadman said. Perrigo's generics business did post a 13% year-over-year revenue decline but the company has been launching new products and the business unit could "quickly become non-core to Perrigo under new leadership," which is expected soon, Steadman said. Perrigo shares have dropped 11% over the last three months, compared with a 3% rise in the S&P 500 .

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