DUBLIN - Perrigo Company plc (NYSE: NYSE:PRGO) reported third quarter 2024 financial results that fell short of analyst expectations, while reaffirming its full-year earnings guidance on Wednesday.
Perrigo shares were unchanged in pre-market trading following the earnings release.
The consumer healthcare company posted adjusted earnings per share of $0.81, missing the analyst consensus of $0.83. Revenue came in at $1.1 billion, below estimates of $1.13 billion and down 3.2% year-over-year.
Despite the earnings miss, Perrigo reaffirmed its fiscal 2024 adjusted EPS outlook of $2.50 to $2.65, compared to the consensus estimate of $2.57.
"We delivered strong third quarter earnings results, despite previously discussed topline impacts from lost distribution of lower margin products in U.S. Store Brand," said President and CEO Patrick Lockwood-Taylor.
The company reported adjusted gross margin expansion of 160 basis points to 41.0%, driven by its infant formula business recovery and benefits from its supply chain reinvention program. Adjusted operating income increased 21.3% to $182 million.
Perrigo said its infant formula business is making significant progress, with net sales growing 3% year-over-year and 58% sequentially compared to Q2 2024. The company cited market share gains for both Perrigo-produced and total store brand infant formula.
For the full year, Perrigo now expects organic net sales and reported net sales to be towards the lower end of its previously stated ranges. The company continues to expect gross and operating margin expansion compared to the prior year.
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