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DUBLIN - On Wednesday, Perrigo Company plc (NYSE:PRGO) cut its full-year guidance, citing challenging infant formula industry dynamics and soft over-the-counter (OTC) market consumption trends.
The company reported third-quarter adjusted earnings of $0.80 per share, beating analyst estimates of $0.76, while revenue fell 4.1% year-over-year to $1.04 billion, missing the consensus estimate of $1.1 billion.
The shares consumer health products maker’s shares tumbled 11.83% in pre-market trading after the results.
Despite the earnings beat, Perrigo lowered its full-year 2025 outlook, now expecting adjusted earnings of $2.70 to $2.80 per share, below the previous analyst consensus of $2.98. The company also projected organic net sales to decline 2.0% to 2.5% for the year.
"While OTC consumption was increasingly soft in the third quarter, the Perrigo team delivered strong in-market performance," said President and CEO Patrick Lockwood-Taylor. "We gained dollar, unit and volume share in five of seven store brand categories and grew share in our key brands, a clear sign that consumers are choosing Perrigo products at the shelf."
The company’s Consumer Self-Care Americas segment saw net sales decrease 3.8% to $646 million, with a 4.4% decline from businesses under strategic review, including Infant Formula and Oral Care. Notably, the company announced it has initiated a strategic review of its Infant Formula business.
Perrigo’s Consumer Self-Care International segment reported a 4.5% decrease in net sales to $398 million, with organic net sales down 5.3%.
"To drive a more consistent and focused growth profile, we continue to evaluate and action our portfolio," added Lockwood-Taylor, noting the company is on track to close its previously announced sale of the Dermacosmetics business in Q1 2026.
Despite the challenges, Perrigo maintained that it expects to deliver mid-to-high single-digit adjusted EPS growth for the year through share gains and accretive initiatives.
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