Perrigo (PRGO - Get Report) shares were tumbling 8.56% to $46.15 in trading Thursday despite the over-the-counter healthcare product company beating Wall Street's second-quarter earnings and revenue expectations .
The Dublin-based company reported net income of $9 million, or 7 cents a share, down from $36 million, or 26 cents a share, a year ago. Adjusted earnings came to 86 cents, beating analysts' expectations of 79 cents.
The company said consumer self-care Americas net sales totaled $582 million, 2.5% lower than a year ago. Sales growth was partially offset by lower net sales in the infant nutrition category, primarily related to lower infant formula contract manufacturing sales as a number of branded customers made the strategic decision to exit the category; discontinued products of $11 million primarily related to the exit of the infant foods business, and an infant formula recall at a leading customer.
Consumer self-care international reported net sales were $328 million, or 8.5% lower than a year ago.
Sales totaled $1.15 billion, down 3.1% from a year ago, but ahead of Wall Street's call for $1.13 billion. Perrigo affirmed its 2019 adjusted outlook of $3.75 to $4.05 a share.
RX reported net sales were $239 million in the quarter, or 3.4% higher than a year ago, due primarily to new product sales of $27 million, improved customer service levels and moderating pricing pressure in the generics industry.
Separately, the company reported that Jeffrey C. Smith, managing member, CEO, and chief investment officer of Starboard Value LP, who has been a director since 2017, resigned from Perrigo's board effective Wednesday.