NYSE$PRGO

Perrigo Company · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Delivered solid financial results with operating income growth and margin expansion. Infant Formula business recovery made significant progress.

Perrigo reported a decrease in net sales by 3.2% to $1.1 billion, with organic net sales decreasing by 2.4%. However, the company saw significant growth in adjusted operating income, which increased by 21.3% to $182 million. Adjusted diluted EPS increased by 26.6% to $0.81. The infant formula business is recovering, with net sales growth of 3% compared to the prior year quarter and 58% sequentially.

  • Net sales decreased by 3.2% to $1.1 billion, with a 2.4% decrease in organic net sales.
  • Adjusted operating income increased by 21.3% to $182 million.
  • Adjusted diluted EPS increased by 26.6% to $0.81.
  • Infant formula net sales grew by 3% compared to the prior year quarter and 58% sequentially.

Headline financials

Total Revenue

$1.09B

Previous: $1.12B-3.2%
EPS

-$0.15

Previous: $0.64-123.4%
Adjusted Operating Income

$182M

Previous: $150M+21.1%
Adjusted Operating Margin

16.8%

No prior period
Reported Operating Margin

7.4%

Previous: 5.5%+34.5%
Adjusted Gross Margin

41.0%

Previous: 39.5%+3.8%
Reported Gross Margin

37.2%

No prior period
Capital Expenditures

-$80.6M

Previous: -$75M-7.5%
Free Cash Flow

-$102M

Previous: -$60.8M-67.1%
Net Income

-$21M

Previous: $14.2M-247.9%
Operating Income

$80.4M

Previous: $62.1M+29.5%
Gross Profit

$404M

Previous: $411M-1.7%
Cash & Equivalents

$1.46B

Previous: $598M+144.6%
Total Assets

$11.2B

Previous: $10.8B+4.1%
Stock-Based Comp

$5.9M

Previous: $14.7M-59.9%

Revenue & EPS history

Perrigo · Revenue · Quarterly

$1.09B

Q3 2024-3.2%vs Q3 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Perrigo · $1.12B total across 2 segments · Q3 2023

  • Consumer Self-Care Americas
    $704M-2.5%
  • Consumer Self-Care International
    $420M+11.2%

Forward guidance

The Company expects its fiscal 2024 organic net sales and total net sales outlook to be towards the lower end of their previously stated ranges. The Company reaffirms its adjusted diluted EPS outlook of $2.50 to $2.65.

Tailwinds

  • Gross and operating margin expansion is expected.
  • Interest expense of approximately $180 million.
  • Full year adjusted tax rate of 19% to 20%.
  • Operating cash flow conversion (operating cash flow as a percentage of adjusted net income) of approximately 90% to 100%.
  • Reaffirms adjusted diluted EPS outlook of $2.50 to $2.65.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

-1.5%

Avg return

Earnings day

-2.1%

Avg return

5 days after

-3.4%

Avg return

30 days after

48%

30 / 63 earnings

Positive

+20.2%

Q4 2024

Best reaction

-25.2%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.3%-5.0%-7.0%
Q4 2025-1.5%-21.0%-33.9%
Q3 2025-25.2%-29.4%-33.4%
Q1 2025+7.2%+9.4%+6.0%
Q4 2024+20.2%+22.1%+16.3%
Q3 2024+6.2%+5.4%+10.7%
Q2 2024+1.8%-1.5%+3.3%
Q1 2024-6.9%-8.1%-19.2%
Q4 2023-17.9%-18.2%+0.1%
Q3 2023+2.0%-0.2%+7.3%
Q2 2023+5.8%+7.3%-8.4%
Q1 2023+1.3%-2.2%-6.5%
Q4 2022+3.9%+6.9%-3.2%
Q3 2022-18.3%-14.9%-18.2%
Q2 2022-1.9%-1.7%-9.3%
Q1 2022+9.1%+15.6%+19.7%
Q4 2021+6.4%+4.8%+8.2%
Q3 2021-8.7%-9.8%-23.0%
Q2 2021-16.0%-16.6%-11.1%
Q1 2021+6.1%+6.4%+13.3%
Q4 2020+4.3%+1.7%+0.3%
Q3 2020-0.3%+1.5%+9.9%
Q2 2020-8.5%-6.1%-7.7%
Q1 2020-3.0%-4.4%+0.8%
Q4 2019-16.4%-12.1%-24.0%
Q3 2019-8.1%-9.3%-3.4%
Q2 2019-7.1%-5.4%-1.1%
Q1 2019+7.5%+1.7%-10.1%
Q4 2018+0.8%+4.0%-0.3%
Q3 2018-14.7%-13.0%-20.2%
Q2 2018-10.7%-11.3%-3.3%
Q1 2018-4.9%+0.4%-5.2%
Q4 2017+1.9%-6.0%-5.6%
Q3 2017+8.0%+5.9%+5.4%
Q2 2017+18.3%+17.2%+24.7%
Q1 2017+4.1%+5.0%+8.5%
Q3 2016+6.9%+6.7%-1.2%
Q2 2016-9.8%-7.2%-6.7%
Q1 2016-4.7%
Q4 2015-10.9%
Q3 2015-1.3%
Q2 2015+1.7%
Q1 2015-1.7%
Q4 2014+6.7%
Q3 2014-11.3%
Q2 2014-4.9%
Q1 2014+10.7%
Q4 2013-5.1%
Q3 2013-0.5%
Q2 2013+5.2%
Q1 2013-8.8%
Q4 2012-8.3%
Q3 2012-4.5%
Q1 2012+1.8%
Q2 2012-0.1%
Q4 2011+1.3%
Q3 2011-7.6%
Q2 2011+2.7%
Q1 2011+1.7%
Q4 2010+0.6%
Q3 2010-0.1%
Q2 2010-2.9%
Q1 2010+0.7%

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