Shares of Perrigo Company plc PRGO were up 3% in after-hours trading on Tuesday after the company announced robust preliminary results for the first quarter of 2020. The company plans to release complete financial results for the quarter during the last week of this month.
The stock has outperformed the industry so far this year. The stock has declined 8.8% so far this year compared with the industry’s decrease of 15.6%.
First-Quarter 2020 Preliminary Results
Perrigo reported preliminary net sales of $1.3 billion for the quarter, slightly higher than the Zacks Consensus Estimate of $1.27 billion. Sales benefitted from higher demand of essential products in March related to the COVID-19 pandemic.
The sales number indicated an increase of 14% from the year-earlier reported figure. Excluding the impact of exited businesses and currency, adjusted net sales increased 18% while organic net sales (excluding sales from products added with Ranir acquisition) were up 11%.
We remind investors that in 2019, Perrigo completed the acquisition of Ranir Global Holdings LLC, the global leader in private label oral self-care market, as part of its transformation into a self-care company. Notably, the company divested its Animal Health business to pet medication and wellness company, PetIQ, Inc. PETQ.
Consumer Self-Care Americas segment reported net sales of approximately $700 million in its preliminary release, suggesting almost 20% growth from the prior-year reported number. Excluding the impact of exited businesses and currency, adjusted net sales rose 25% while organic net sales improved 15%.
Net sales in the Consumer Self-Care International segment came in at $380 million, implying a 9% increase from the prior-year reported figure. However, excluding the impact of exited businesses and currency, adjusted net sales were up 14%. Organic net sales were up 8% as well.
For the quarter, the RX segment generated net sales of approximately $260 million, hinting at an increase of 6% from the year-ago reported number. Sales in the segment benefitted from the launch of generic albuterol sulfate inhalation aerosol, partially offset by the loss in net sales of testosterone gel due to price erosion.
Perrigo estimates adjusted operating income in the first quarter of 2020 to be between $220 million and $225 million.
Perrigo Company plc Price
Perrigo Company plc price | Perrigo Company plc Quote
Zacks Rank & Stocks to Consider
Perrigo currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the biotech sector are Allogene Therapeutics, Inc. ALLO and Fate Therapeutics, Inc. FATE, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Allogene’s loss per share estimates have narrowed from $2.54 to $2.50 for 2020 and from $2.81 to $2.75 over the past 30 days.
Fate Therapeutics’loss per share estimates have narrowed from $1.66 to $1.56 for 2020 and from $1.84 to $1.80 over the past 30 days. The stock has gained 23.6% so far this year.
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