Perrigo Sees Q1 Profit Below Estimates; Cuts Outlook; Names John Hendrickson CEO

(RTTNews) - Perrigo Company plc (PRGO) announced the company estimates first-quarter net sales to be between $1.33 - $1.35 billion. Estimated adjusted earnings per share are expected to be between $1.71 - $1.77, assuming a tax rate of approximately 14%, based on preliminary estimates. Analysts polled by Thomson Reuters expect the company to report profit per share of $1.89 for the quarter. Analysts' estimates typically exclude special items. Analysts expect revenue of $1.40 billion for the quarter.

The company now expects calendar year 2016 adjusted earnings per share to be between $8.20- $8.60, based on preliminary estimates. The company said the majority of this change in guidance provided on February 18 is the result of a reduction in pricing expectations in Rx segment due to industry and competitive pressures in the sector. The remainder of the reduction is primarily due to weaker-than-expected performance within the BCH segment for the next three quarters and lower expectations for consolidated new product launches. Analysts expect the company to report profit per share of $9.52.

Perrigo also announced the appointment of John Hendrickson as Chief Executive Officer, effective immediately, following the resignation and departure of Joseph Papa. Hendrickson has served as President of the Perrigo since October 2015. Perrigo said, with the changes, the Board is also separating the roles of CEO and Chairman of the Board and, elected Independent Director Laurie Brlas to the role of Chairman of the Board.

Shares of Perrigo Company were down more than 7% in pre-market trade on Monday.