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Perrigo shares slide as drugmaker slashes full-year forecast again
Posted On Aug 11 2016
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Perrigo said, primarily due to revised expectations for the Rx segment, it expects 2016 reported earnings to be between $0.26 and $0.56 per share. During the same period previous year, the firm posted $2.18 earnings per share.
The company, which had a market capitalisation of $13.62 billion as of Tuesday’s close, said it now expected adjusted earnings of $6.85-$7.15 per share for the year, down from its earlier estimate of $8.20-$8.60.
Average EPS forecast for the current year is $8.19 according to 21 analysts making projections for Perrigo Company plc Ordinary Shares (NYSE:PRGO). The business’s quarterly revenue was down 3.7% compared to the same quarter past year. Deutsche Bank Upgraded Perrigo Company plc Ordinary Shares on Jul 22, 2016 to ” Buy”, Price Target of the shares are set at $115.Perrigo Company plc Ordinary Shares was Downgraded by Argus to ” Hold” on Jun 20, 2016.
“Perrigo is a high quality company and I do think it’s going to take a little while to mend things”, Louise Chen of Guggenheim said Wednesday by phone.
Perrigo’s announcement in May that it was cutting its forecast unleashed scepticism about Mr Papa’s tenure at the company. Analysts expected revenue of $1.43 billion for the quarter.
An hour before the close of daily trading today, Perrigo shares were down by $9.70 to $85.39 per share. The company has a 50 day moving average price of $92.58 and a 200 day moving average price of $111.97. Investors of record on Friday, August 26th will be paid a $0.145 dividend.
Given that Perrigo has benefited from having one of the highest selling price points per generic unit, “it is not surprising to see a competitive influx of generic competition into high value extended topical generic products”, Leerink analysts wrote in a research note. The ex-dividend date is Wednesday, August 24th. Morgan Stanley reissued a “hold” rating on shares of Perrigo in a research report on Saturday, May 14th. Perrigo presently has an average rating of “Hold” and a consensus price target of $132.15.
