Perrigo (NYSE:PRGO) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• Perrigo shares surged after the company reported quarterly EPS of $0.50, beating the $0.34 analyst consensus, while revenue of $1.02 billion slightly exceeded estimates. However, revenue declined 3.1% year over year.
• Perrigo declared a quarterly dividend of $0.29, representing an annualized payout of $1.16 and an approximately 9.0% yield.
• Analysts maintain a consensus “Hold” rating on the stock, with one Buy, four Hold and one Sell rating; the average price target is $19.33.

Perrigo Company plc (NYSE:PRGO - Get Free Report) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $10.78, but opened at $12.62. Perrigo shares last traded at $13.19, with a volume of 1,348,316 shares trading hands.

The company reported $0.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.34 by $0.16. Perrigo had a negative net margin of 43.50% and a positive return on equity of 9.96%. The firm had revenue of $1.02 billion for the quarter, compared to the consensus estimate of $1.01 billion. During the same quarter last year, the firm posted ($0.06) EPS. The business's quarterly revenue was down 3.1% compared to the same quarter last year. Perrigo has set its FY 2026 guidance at 2.250-2.550 EPS.

Perrigo Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Friday, August 28th will be issued a $0.29 dividend. The ex-dividend date is Friday, August 28th. This represents a $1.16 annualized dividend and a yield of 9.0%. Perrigo's dividend payout ratio (DPR) is currently -8.85%.

Wall Street Analysts Forecast Growth

PRGO has been the subject of a number of research reports. Zacks Research upgraded shares of Perrigo from a "strong sell" rating to a "hold" rating in a research note on Monday, April 27th. Weiss Ratings raised Perrigo from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday, July 21st. One investment 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 MarketBeat, Perrigo currently has an average rating of "Hold" and an average target price of $19.33.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Geneos Wealth Management Inc. lifted its holdings in Perrigo by 439.1% during the first quarter. Geneos Wealth Management Inc. now owns 965 shares of the company's stock valued at $27,000 after purchasing an additional 786 shares in the last quarter. Kestra Investment Management LLC raised its position in shares of Perrigo by 57.1% during the 2nd quarter. Kestra Investment Management LLC now owns 1,766 shares of the company's stock valued at $47,000 after purchasing an additional 642 shares during the period. EverSource Wealth Advisors LLC lifted its stake in shares of Perrigo by 116.0% during the 4th quarter. EverSource Wealth Advisors LLC now owns 1,888 shares of the company's stock valued at $26,000 after buying an additional 1,014 shares in the last quarter. UMB Bank n.a. boosted its holdings in Perrigo by 161.5% in the 4th quarter. UMB Bank n.a. now owns 1,964 shares of the company's stock worth $27,000 after buying an additional 1,213 shares during the period. Finally, Meeder Asset Management Inc. bought a new position in Perrigo in the 4th quarter worth $28,000. Hedge funds and other institutional investors own 95.91% of the company's stock.

Perrigo Price Performance

The company has a current ratio of 2.72, a quick ratio of 1.59 and a debt-to-equity ratio of 1.45. The stock has a 50 day simple moving average of $10.52 and a 200-day simple moving average of $11.56. The firm has a market cap of $1.79 billion, a PE ratio of -0.99, a price-to-earnings-growth ratio of 1.28 and a beta of 0.51.

About Perrigo

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.

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