Perrigo (NYSE:PRGO) Posts Quarterly Earnings Results, Misses Estimates By $0.03 EPS

Perrigo (NYSE:PRGO) issued its quarterly earnings results on Thursday. The company reported $0.77 earnings per share for the quarter, missing analysts’ consensus estimates of $0.80 by ($0.03), Briefing.com reports. Perrigo had a positive return on equity of 9.16% and a negative net margin of 1.21%.The firm had revenue of $1.11 billion for the quarter, compared to the consensus estimate of $1.09 billion. During the same period last year, the company posted $0.93 EPS. The business’s revenue was down 2.5% on a year-over-year basis. Perrigo updated its FY 2026 guidance to 2.250-2.550 EPS.

Here are the key takeaways from Perrigo’s conference call:

• Management guided CORE Perrigo organic net sales of -3.5% to +0.5% for 2026 and CORE EPS of $2.25–$2.55, warning of an approximately $0.60 EPS headwind from temporary plant under‑absorption in 2026.
• Perrigo said its Three‑S strategy delivered clear marketplace momentum—accelerating share gains, over $100M in new retailer distribution, and roughly $320M of benefits from Project Energize and Supply Chain Reinvention that improved operating income and EPS.
• The infant formula business remains under strategic review after steep net‑sales declines (~25% Q, ~10% FY), elevated inventories and working‑capital strain, and the company recorded a $1.3B goodwill impairment while warning of up to $350M additional non‑cash impairment possible in Q1 2026.
• Perrigo is launching a global operational enhancement program (including ~7% workforce reduction) expected to generate material productivity savings and margin improvement, with one‑time implementation costs of about $80–$90M.
• Balance‑sheet and capital priorities remain: $532M cash at year‑end, net leverage about 4.0x, dividend maintained, and management expects proceeds from the planned dermacosmetics sale to help reduce debt while targeting sub‑3x leverage over the next 2–3 years.

Perrigo Stock Down 1.6%

Shares of PRGO traded down $0.23 during trading hours on Thursday, hitting $14.18. The stock had a trading volume of 8,204,242 shares, compared to its average volume of 2,158,228. Perrigo has a 1-year low of $12.17 and a 1-year high of $30.93. The firm has a market capitalization of $1.95 billion, a P/E ratio of -37.32, a price-to-earnings-growth ratio of 1.29 and a beta of 0.39. The firm has a 50 day simple moving average of $14.41 and a 200-day simple moving average of $17.55. The company has a debt-to-equity ratio of 0.81, a current ratio of 2.51 and a quick ratio of 1.44.

Perrigo Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 24th. Stockholders of record on Monday, March 2nd will be given a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a dividend yield of 8.2%. The ex-dividend date of this dividend is Monday, March 2nd. Perrigo’s dividend payout ratio is -305.26%.

Institutional Investors Weigh In On Perrigo

Hedge funds and other institutional investors have recently modified their holdings of the company. Aristides Capital LLC bought a new position in Perrigo during the 4th quarter valued at $212,000. Jain Global LLC purchased a new stake in shares of Perrigo in the fourth quarter valued at about $211,000. Parallel Advisors LLC lifted its position in shares of Perrigo by 795.5% during the fourth quarter. Parallel Advisors LLC now owns 14,963 shares of the company’s stock valued at $208,000 after purchasing an additional 13,292 shares in the last quarter. CIBC Asset Management Inc purchased a new position in Perrigo during the fourth quarter worth about $183,000. Finally, Amundi bought a new stake in Perrigo in the 4th quarter worth about $183,000. Institutional investors own 95.91% of the company’s stock.

Perrigo News Roundup

Here are the key news stories impacting Perrigo this week:

• Positive Sentiment: Revenue slightly beat analyst expectations for Q4 at $1.11B (consensus ~$1.09B), showing resilience in top-line despite soft category demand. Press Release / Slide Deck
• Positive Sentiment: Management launched an operational enhancement program expected to deliver $80–$100M of pre-tax annualized savings, which could support margin recovery over time. PR Newswire Release
• Neutral Sentiment: Company introduced a new reporting structure and a “CORE” outlook (excludes infant formula and certain divestitures), improving operating clarity but reducing near-term comparability to prior periods. Earnings Presentation
• Negative Sentiment: Q4 EPS missed consensus: $0.77 reported vs. $0.80 expected and down from $0.93 a year ago—an earnings shortfall that pressured sentiment. Zacks: Q4 Earnings Lag
• Negative Sentiment: FY2026 “all-in” guidance came in below Street expectations: EPS guide of $2.25–2.55 (consensus ~2.70) and revenue guide toward the low end of $4.0–4.2B. Lower-than-expected guidance is the main near-term driver of the stock pullback. PR Newswire Release
• Negative Sentiment: Organic net sales declined ~4.5% year-over-year (overall net sales -2.5%), highlighting persistent demand weakness in some categories. PR Newswire Release

Wall Street Analyst Weigh In

PRGO has been the topic of a number of recent research reports. Wall Street Zen lowered Perrigo from a “buy” rating to a “hold” rating in a research note on Saturday, November 8th. Zacks Research upgraded shares of Perrigo from a “strong sell” rating to a “hold” rating in a report on Friday, February 13th. JPMorgan Chase & Co. cut their target price on shares of Perrigo from $20.00 to $18.00 and set a “neutral” rating on the stock in a research report on Monday, December 15th. Jefferies Financial Group reissued a “hold” rating on shares of Perrigo in a report on Thursday. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Perrigo in a research note on Monday, December 22nd. One equities research analyst has rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $20.33.

Perrigo Company Profile

Perrigo Company plc is a global healthcare supplier specializing in over-the-counter (OTC) and self-care products, as well as generic prescription pharmaceuticals and active pharmaceutical ingredients. The company develops, manufactures and distributes a broad array of consumer health products, including analgesics, vitamins and supplements, digestive health remedies, topical treatments, and infant formulas. Perrigo’s focus on private-label solutions has made it a leading partner for retailers and pharmacy chains seeking high-quality, value-oriented alternatives to branded medications and health supplements.

Organized across three principal business segments—Consumer Healthcare, Prescription Pharmaceuticals and Active Pharmaceutical Ingredients—Perrigo’s operations span research and development, manufacturing, quality assurance and global distribution.