Perrigo Cuts Earnings Guidance On Disappointing Q3 Results - Quick Facts

(RTTNews) - Perrigo Company plc (PRGO) said its third quarter adjusted earnings per share declined 25.0% year-over-year as supply chain disruption and higher input costs negatively impacted third quarter results. Perrigo said its challenges include: a historically weak cough/cold season affecting first quarter sales and manufacturing efficiencies, higher input costs and the sudden supply chain disruption, primarily in the form of a shortage of truck drivers, which began in the third quarter. In combination, these factors are anticipated to negatively impact total year adjusted EPS by $0.79. As a result, Perrigo lowered its earnings guidance.

Third quarter adjusted earnings per share decreased 25.0% to $0.45. On average, three analysts polled by Thomson Reuters expected the company to report profit per share of $0.65, for the quarter. Analysts' estimates typically exclude special items.

Reported net loss was $54 million, or $0.40 per share, compared to net income of $26 million, or $0.19 per share, last year.

Net sales were $1.04 billion, an increase of 4.0%. Organic net sales growth was 2.6%. Analysts on average had estimated $1.05 billion in revenue.

For 2021, the company now expects adjusted EPS of between $2.00 to $2.10. Analysts expect the company to report profit per share of $2.46.

Perrigo still believes it will deliver on its original 2023 EPS transformation plan targets.

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