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Perrigo Shares Off on Swing to Loss, Lagging Adjusted Profit

Perrigo's third-quarter adjusted earnings totaled 45 cents a share, beneath the FactSet analyst consensus of 65 cents. The stock is lower.
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Perrigo  (PRGO) - Get Perrigo Co. Plc Report shares declined Wednesday after the health- and wellness-products company reported weaker-than-expected third-quarter results.

It also forecast full-year earnings below analysts’ consensus estimate. 

The supply-chain disruption stemming from the pandemic produced the most unshipped orders in the Dublin company's history amid a dearth of trucks and drivers.

Perrigo registered a loss of $54 million, or 40 cents a share, for the quarter, swinging from profit of $26 million, or 19 cents a share, in the year-earlier quarter.

The latest adjusted earnings totaled 45 cents a share, beneath the FactSet analyst consensus of 65 cents.

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Sales climbed 4% to $1.04 billion in the latest quarter from a year earlier, trailing the analyst consensus of $1.05 billion.

The stock recently traded at $41.50, down 13%. The stock has traded on Wednesday down as much as 15% at $40.22. It had risen 3% in the month through Tuesday.

“Our disappointing third quarter results reflect the continuing impacts of the challenging operating environment caused by the global Covid-19 pandemic that began in 2020, have continued in 2021 and are not indicative of our future growth potential,” Chief Executive Murray Kessler said in a statement.

“These challenges fall into three categories: 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 forecast to negatively impact total year adjusted diluted [earnings per share] by $0.79, which could only be partially offset, leading us to lower our earnings guidance."

Perrigo forecasts full-year adjusted EPS of $2 to $2.10, trailing analysts’ consensus of $3.05.