Perrigo cuts revenue, raises EPS guidance

The pharmaceutical company reported strong growth and record revenue and profit for the third fiscal quarter.

Perrigo Company (Nasdaq:PRGO; TASE:PRGO) reported record revenue and profits for its third fiscal quarter of 2012, which ended in March, but cut its revenue guidance for the fiscal year, which ends in June.

Revenue rose 13% to $778 million for the third fiscal quarter from $691.4 million from the corresponding quarter of 2011. $70 million of the growth came from the acquisitions of Paddock Laboratories Inc. and CanAm Care LLC, and $64 million was due to new product sales. These were partly offset by lower sales of certain current consumer healthcare and nutritional supplement products.

GAAP-based net profit rose to $115.7 million ($1.23 per share) for the third fiscal quarter from $92 million for the corresponding quarter, and non-GAAP net profit rose 32% to $132.7 million ($1.41per share) from $100.2 million. Perrigo beat the analysts' consensus of $1.21 per share but missed the revenue consensus of $825.1 million.

Perrigo raised its full-year non-GAAP earnings per share guidance to $4.90-$5.00 per share from $4.70-4.80, reflecting 22-25% growth over the corresponding quarter. However, it lowered its revenue growth forecast to 15-18% from 17-20%, citing a mild cold and flu season.

Consumer healthcare sales rose 6% to $449 million for the third fiscal quarter from $425 million for the corresponding quarter, due to $34 million in new product sales and $5 million in sales growth for existing products. Nutritionals segment sales fell to $118 million from $126 million, due to lower existing product sales of $27 million in the vitamins, minerals and supplements and infant formula segments, which were partly offset by $20 million in new product sales. Rx pharmaceuticals sales rose 84% to $156 million from $85 million, due to $62 million in sales from Paddock products.

Perrigo chairman and CEO Joseph Papa said that the new product launches would keep the company on track to exceed its $190 million new product sales goal for fiscal 2012. He added that the Rx segment continues to exceed expectations in both the existing and newly acquired businesses.

Perrigo's share price fell 5.6% in at the opening on Nasdaq to $98 giving a market cap of $9.6 billion, after falling 4.6% on the TASE to NIS 377.10.

Published by Globes [online], Israel business news - www.globes-online.com - on May 8, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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