Perrigo Cuts FY16 Adj. EPS Guidance; Q2 Profit Misses Estimates; Shares Plunge

(RTTNews) - Perrigo Company plc (PRGO) announced the company now anticipates calendar 2016 adjusted EPS to be in the range of $6.85 to $7.15. In May, the company projected 2016 adjusted earnings per share in the range of $8.20 to $8.60. Analysts polled by Thomson Reuters expect the company to report profit per share of $8.19. Analysts' estimates typically exclude special items. Perrigo said, primarily due to revised expectations for the Rx segment, it expects 2016 reported earnings to be between $0.26 and $0.56 per share.

Perrigo's CEO John Hendrickson said, "We are changing adjusted EPS guidance for 2016. The majority of this change is due to revised expectations for price erosion and continued fluid market dynamics affecting the Rx business. In addition, we are revising our guidance on lower performance expectations for the BCH segment as we continue to implement transformational organizational changes and improvements in products and process in this business."

Second-quarter 2016 adjusted net income was $278 million, or $1.93 per share, compared to $320 million, or $2.18 per share for the same period last year. On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $1.98 for the quarter. Analysts' estimates typically exclude special items.

Reported net income was $194 million, or $1.35 per share, included the favorable impact of a $30 million reduction in the non-cash goodwill impairment recorded in the first quarter of 2016, compared to $56 million, or $0.38 per share, in the prior year.

Reported net sales in the quarter were $1.48 billion, a decrease of 3% over the second quarter of 2015 due primarily to relatively lower sales in the Consumer Healthcare segment, offset partially by higher sales in the Rx segment. Excluding any net sales contribution from held-for-sale businesses, adjusted net sales in the quarter were $1.44 billion, a decrease of 3%, on a constant currency basis over the second quarter of 2015. Analysts expected revenue of $1.43 billion for the quarter.

Shares of Perrigo Company were down more than 10% in pre-market trade on Wednesday.