Earnings Preview: Perrigo

| About: Perrigo Company (PRGO)

Perrigo (NASDAQ:PRGO) is expected to report Q1 earnings before market open Thursday, November 6, with a conference call scheduled for 10:00 am ET.


Analysts are looking for a profit of 43c on revenue of $496M. The consensus range is 40c to 46c for EPS, and revenue of $479M to $507M, according to First Call. In its Q4 earnings release, Perrigo reported EPS 39c verses consensus of 41c and revenue of $500M verses consensus of $476M. On August 18, Perrigo gave FY09 EPS guidance of $1.90 to $1.98 verses a consensus of $1.95. Possible EPS drivers are opportunities for margin expansion and revenue growth from its consumer healthcare segment. Possible negative factors for this earnings period include possible integration costs and disruptions from its acquisition of JB Laboratories.

Analyst Views

Credit Suisse upgraded Perrigo to Outperform from Neutral based on its acquisition of JB Labs. JB Laboratories is a contract manufacturer of OTC and nutrition products for leading healthcare suppliers in the U.S. The acquisition is expected to add more than $70 million of annual sales.