Perrigo Updates FY22 Adj. EPS Outlook; Reiterates Organic Sales Growth Outlook

(RTTNews) - Perrigo Company plc (PRGO) updated its fiscal 2022 adjusted EPS outlook to $2.00-$2.10 from $2.25-$2.35. The company updated its earnings outlook as year-to-date performance in CSCI and accretion from the purchase of the Gateway plant, along with the U.S. and Canadian rights to the Good Start infant formula brand, are expected to be more than offset by lower sales volumes in CSCA, and $0.10 from the worsening impact of currency translation. Perrigo noted that, if foreign currency exchange rates hold near current levels, adjusted EPS in the full year will be unfavorably impacted by approximately $0.25. The company now expects to achieve a constant currency adjusted EPS in a range of $2.25-$2.35.

Perrigo Company reiterated its fiscal 2022 organic net sales growth range outlook of 9.0%-10.0%. The company also reiterated fiscal 2022 total net sales growth range outlook of 8.5%-9.5%. If foreign currency exchange rates hold near current levels, the company now expects net sales to be unfavorably impacted by 5%-6%.

Third quarter adjusted net income was $76 million, or $0.56 per share, compared to $61 million, or $0.45 per share, prior year. Constant currency EPS for the quarter was $0.65.

Reported net loss was $52 million, or $0.39 per share, compared to a net loss of $54 million, or $0.40 per share, prior year.

Net sales were $1.1 billion, an increase of 5.5%, or 12.3% excluding the impact of currency translation. Organic net sales increased 7.7% in the third quarter.

CEO, Murray Kessler, said: "Although revenue growth in the quarter was robust, it was below our estimates due to unfavorable currency translation, labor shortages effecting supply and slower category growth rates."

Shares of Perrigo Company plc are down 3% in pre-market trade on Tuesday.

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