OTC Medicine Player Perrigo Outlines Three-Year Cost Saving Plan, Posts Mixed Q4 Earnings
Portfolio Pulse from Vandana Singh
Perrigo Company plc (NYSE:PRGO) reported mixed Q4 earnings with a slight miss on net sales at $1.16 billion versus the consensus of $1.18 billion but beat EPS estimates with $0.86, up 14.7% Y/Y. The company announced Project Energize, a cost-saving plan expected to yield $140-$170 million in annual pre-tax savings by 2026, despite projecting a net reduction of 6% of its workforce. Perrigo forecasts FY 2024 organic net sales growth of 1.0%-3.0% and adjusted EPS of $2.50-$2.65, below the consensus of $3.00. PRGO shares dropped 15.3% to $27.25.
February 27, 2024 | 7:46 pm
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Perrigo reported mixed Q4 earnings, announced a significant cost-saving plan, and provided FY 2024 guidance below consensus expectations. Shares fell 15.3% to $27.25.
The mixed Q4 earnings report, coupled with the announcement of Project Energize and its associated workforce reduction, likely contributed to the negative investor sentiment. The FY 2024 EPS guidance being below consensus further dampened expectations, leading to a significant drop in share price.
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