|
Related Topics
|
Category: Stock Market and Perrigo
Date: 19 September 2019 Stock Price: $55.32 We take a look at the 2nd quarter earnings release of their 2019 fiscal year of Perrigo a consumer focused self-care company.
|
About Perrigo
Perrigo is a leading global consumer-focused self-care company. Our vision is to making lives better by bringing “Quality, Affordable Self-Care Products™” that consumers trust everywhere they are sold. The Company is a leading provider of health and wellness solutions that enhance individual well-being by empowering consumers to proactively prevent or treat conditions that can be self-managed
Overview of Perrigo's latest earnings report
The numbers we are interested in (for the quarter):
- Total Sales $1.149 billion (down from $1.186 billion from the same quarter of the previous year)
- Sales decreased by -3.12% over the last 12 months
- Cost of Sales: $718.2 million (up from $715.4 million for the same quarter of the previous year)
- Cost of revenues increased by 0.39% over the last 12 months
- Net income: $9 million (down from $36.2 million loss for the same quarter of the previous year)
- Diluted earnings per share: $0.07 (down from $0.26 for the same quarter of the previous year)
- Diluted weighted-average shares outstanding: 136.5 million (down from 138.7 million for the same quarter of the previous year)
- Cash and cash equivalents: $1.055 billion
- Cash and cash equivalents per share: $7.72
- Cash and cash equivalents makes up 13.97% of Perrigo's market capital
- Cash and cash equivalents makes up 9.42% of Perrigo's total assets
- Stockholders equity: $5.726 billion
- Stockholders equity per Perrigo's stock: $41.94
- Perrigo is trading at 1.32 times its stockholders equity per share
- Cash generated from operations (for 6 months): $72.9 million
- Cash generated from operations per share (for 6 months): $0.54
Perrigo's management commentary on the results and earnings guidance
Perrigo Company plc (NYSE; TASE: PRGO) today announced financial results for the second quarter ended June 29, 2019.
President and CEO Murray S. Kessler commented, "The Perrigo transformation to a consumer self-care company, discussed in depth on our Investor Day on May 9, is now in the critically important execution phase. While we are in the early stages, significant progress was made during the second quarter, as evidenced by robust store-brand OTC sales in the USA, solid branded new product sales internationally, a return to strong customer service levels in the USA and the finalization of the Project Momentum $100 million cost-savings program road map. The company also closed on the Ranir (market leading private label oral self-care company) acquisition and the Perrigo Animal Health Division divestiture shortly after quarter-end."
Kessler continued, "This marks the third consecutive quarter Perrigo has delivered on our stated financial goals, which we believe is integral to the re-establishment of management credibility. Transformation activities will help Perrigo return to year-over-year growth for the balance of the year."
Outlook
The image below shows some of Perrigo's business highlights
President and CEO Murray S. Kessler commented, "The Perrigo transformation to a consumer self-care company, discussed in depth on our Investor Day on May 9, is now in the critically important execution phase. While we are in the early stages, significant progress was made during the second quarter, as evidenced by robust store-brand OTC sales in the USA, solid branded new product sales internationally, a return to strong customer service levels in the USA and the finalization of the Project Momentum $100 million cost-savings program road map. The company also closed on the Ranir (market leading private label oral self-care company) acquisition and the Perrigo Animal Health Division divestiture shortly after quarter-end."
Kessler continued, "This marks the third consecutive quarter Perrigo has delivered on our stated financial goals, which we believe is integral to the re-establishment of management credibility. Transformation activities will help Perrigo return to year-over-year growth for the balance of the year."
Outlook
- The Company reaffirms its adjusted diluted EPS to be in the range of to $3.75 to $4.05 per share. Guidance includes the Ranir acquisition and Animal Health divestiture.
- Potential upside to this adjusted EPS range includes contributions from a launch of the generic version of ProAir® (+ $0.00 – $0.10 cents) and/or incremental cost savings from Project Momentum of up to $0.05.
- The Company expects an acceleration of net sales growth in the second half of the year driven by Ranir (excluding animal health, exited infant foods and impact of currency).
The image below shows some of Perrigo's business highlights
The summary below shows the contribution to Perrigo's total net sales (for the 2018 fiscal year) of various product categories:
- Cough/cold/allergy/sinus:23.0%
- Analgesics:10.0%
- Gastrointestinal: 10.5%
- Infant nutritionals: 11.1%
- Smoking cessation: 7.8%
- Animal health: 0%
- Lifestyle: 8.4%
- Personal care and derma-therapeutics: 9.8%
- Natural health and vitamins, minerals and dietary supplements: 3.7%
- Anti-parasites: 2.8%
- Other: 13.0%
- Total consumer net sales: 100.0%
Perrigo (NYSE:PRGO) stock price history
The image below, obtained from Google, shows the stock price history of Perrigo (NYSE: NTAP) for the last 5 years. And its not been a good time for stockholders of Perrigo. 5 years ago the stock was trading at $147 a stock and its currently trading at $55.32. Thats a loss of 62.3% for Perrigo stockholders over the last 5 years. The stock is trading at close to the midpoint between its 52 week high and its 52 week low which to us is an indication that short term sentiment and momentum of Perrigo is neutral.
Recent coverage of Perrigo
The extract below discusses Perrigo at more detail, as obtained from Zacks.
It has been about a month since the last earnings report for Perrigo (PRGO - Free Report) . Shares have added about 6.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Perrigo due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Perrigo Beats on Q2 Earnings and Sales
Perrigo reported second-quarter 2019 adjusted earnings of 86 cents per share, which beat the Zacks Consensus Estimate of 81 cents. However, the bottom line decreased 29.4% year over year. Net sales declined 3.1% year over year to $1.15 billion but outpaced the Zacks Consensus Estimate of $1.13 billion. The year-over-year decline was mainly due to poor performance of the Consumer Self-Care segment in international markets. Sales of $65 million from new products were partially offset by a loss of $27 million in sales from discontinued products. Currency movement had an unfavorable impact of $24 million. Sales declined 1.1% excluding the impact of foreign currency movement.
Read the full article here
It has been about a month since the last earnings report for Perrigo (PRGO - Free Report) . Shares have added about 6.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Perrigo due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Perrigo Beats on Q2 Earnings and Sales
Perrigo reported second-quarter 2019 adjusted earnings of 86 cents per share, which beat the Zacks Consensus Estimate of 81 cents. However, the bottom line decreased 29.4% year over year. Net sales declined 3.1% year over year to $1.15 billion but outpaced the Zacks Consensus Estimate of $1.13 billion. The year-over-year decline was mainly due to poor performance of the Consumer Self-Care segment in international markets. Sales of $65 million from new products were partially offset by a loss of $27 million in sales from discontinued products. Currency movement had an unfavorable impact of $24 million. Sales declined 1.1% excluding the impact of foreign currency movement.
Read the full article here
Perrigo (NYSE: PRGO) latest stock valuation
So based on the earnings report of Perrigo (NYSE: PRGO) and what do we value Perrigo (PRGO) stock at? Based on the earnings reported and the fiscal guidance provided by the group our valuation model provides a target (full value) price for Perrigo at $60 a stock. We therefore believe the stock of Perrigo is undervalued We suggest long term fundamental and value investors look to enter the stock at least 10% below our target price of $60. Therefore a good entry point into the stock of Perrigo would be around $54 a stock