Perrigo Q2 Stock Plunges After Q2 Earnings Miss, Weak Cough/Cold Season

Perrigo Company plc PRGO has posted Q2 sales of $981 million, an increase of 3.4% Y/Y, missing the consensus of $1.02 billion.
The sales growth was primarily due to an increase in most businesses and favorable currency movements, partially offset by Y/Y customer inventory reductions and a historically weak cough/cold season. Organic net sales growth was 0.5%.
Consumer Self-Care International Segment sales increased 11.7% to $359 million. Organic net sales grew 4.3%.
Consumer Self-Care Americas Segment reported sales of $622 million, down 0.9% Y/Y.
Adjusted operating income was $118 million, a decrease of 10.7%, due to higher operating expenses primarily to reinstate brand and marketing investments to pre-COVID-19 levels, lower volumes, unfavorable plant overhead absorption, higher input costs.
Adjusted diluted EPS of $0.50 declined from $0.59 in the prior-year quarter due primarily to reinstatement of brand and marketing investments. The consensus estimate was $0.62.
Outlook: Perrigo reaffirmed fiscal 2021 organic net sales growth outlook of 3% and expected adjusted diluted EPS towards the lower end of guidance of $2.50 - $2.70 (consensus $2.59).
Price Action: PRGO shares are down 11.70% at $43.44 on the last check Wednesday.

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