Perrigo Q2 Results Beat Estimates; Affirms 2015 Earnings Outlook

(RTTNews) - Ireland-based drugmaker Perrigo Company plc (PRGO) on Wednesday reported a 57 percent decline in profit for the second quarter from last year as strong revenue growth was more than offset by higher expenses.

However, both revenue and adjusted earnings per share for the quarter beat analysts' expectations and the company affirmed its earnings outlook for fiscal 2015.

Perrigo is the takeover target for generic drug Mylan N.V (MYL), which is itself fending off an unsolicited bid from Israeli rival Teva Pharmaceutical Industries Ltd. (TEVA).

For the second calendar quarter, Perrigo's net income was $56.4 million or $0.38 per share, down from $131.7 million or $0.98 per share in the year-ago period.

Excluding charges, adjusted net income for the quarter was $320.3 million or $2.18 per share, compared to $234.1 million or $1.74 per share in the same period last year.

On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $1.96 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 34 percent to $1.53 billion from $1.14 billion in the year-ago period. Analysts had a consensus revenue estimate of $1.52 billion for the quarter.

The increase in revenues was attributable primarily to $401 million related to the inclusion of the Branded Consumer Healthcare segment and 11 percent growth in the Rx segment on a constant currency basis. On a constant currency basis, revenues increased 36 percent from last year.

New product sales for the quarter were a record $149 million, driven by $116 million from legacy Perrigo and a $33 million contribution from BCH.

Segment wise, Consumer Healthcare net sales declined 3 percent to $746.4 million, while Branded Consumer Healthcare net sales were $401.2 million. Rx segment revenues increased 10 percent to $278.3 million, while Specialty Science revenues decreased 3 percent to $83.6 million.

Total operating expenses for the quarter surged 84 percent from last year to $401.2 million.

Looking ahead to calendar year 2015, Perrigo affirmed its outlook for adjusted earnings in a range of $7.50 to $8.00 per share, representing an increase of 20 percent to 28 percent over calendar 2014 adjusted earnings per share.

The Street expects the company to report earnings of $7.64 per share for the year.

PRGO is trading at $192.25, up $1.61 or 0.84 percent on a volume of 43,431 shares.