Did You Suffer Losses in Perrigo Company plc (PRGO)? Contact Levi & Korsinsky About Securities Fraud ClaimsNovember 13, 2025 3:32 PM EST | Source: Levi & Korsinsky, LLPNew York, New York--(Newsfile Corp. - November 13, 2025) - Levi & Korsinsky notifies investors that it has commenced an investigation of Perrigo Company plc ("Perrigo Company plc") (NYSE: PRGO) concerning possible violations of federal securities laws.Perrigo issued a press release on November 5, 2025, "announc[ing] that it is i ...

Core Viewpoint - An investigation has been announced regarding Perrigo Company plc for potential violations of federal securities laws, which may impact investors who have suffered losses [1] Company Summary - Perrigo Company plc is under scrutiny for possible legal violations that could affect its investors [1] - The Law Offices of Howard G. Smith are reaching out to investors who may have incurred losses to discuss potential claims for recovery [1]

Core Viewpoint - Perrigo Company plc is under investigation for potential violations of federal securities laws, which may impact investors who have incurred losses [1] Investigation Details - The investigation is initiated by the Law Offices of Frank R. Cruz on behalf of investors [1] - The focus is on the company's financial disclosures and compliance with securities regulations [1] Investor Impact - Investors who lost money on Perrigo Company plc are encouraged to inquire about pursuing claims to recover their losses [1] - The investigation follows the release of Perrigo's third quarter financial results for 2025, indicating potential concerns regarding the company's financial health [1]

Core Insights - Perrigo Company plc is under investigation for possible violations of federal securities laws, as announced by Levi & Korsinsky [1] - On November 5, 2025, Perrigo announced a strategic review of its infant formula business, which includes reassessing a previously announced investment of $240 million [2] - Following the announcement of the strategic review, Perrigo's stock price dropped over 25% on the same day [2] Company Developments - The strategic review aims to accelerate cash flows and optimize the impact of the portfolio [2] - The review will consider a range of alternatives for the infant formula business [2] Legal Context - Levi & Korsinsky LLP has a history of representing investors in securities litigation and has secured significant settlements for shareholders [3] - The firm has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [3]

Core Viewpoint - Perrigo Company plc (NYSE:PRGO) has experienced significant stock decline, reaching a new 52-week low due to weak net sales and a strategic review of its infant formula business [1][3]. Financial Performance - Perrigo's stock fell to $15.05 during intra-day trading, ultimately closing at $15.10, reflecting a 25.21% decrease [2]. - The company's net sales decreased by 4% to $1.043 billion from $1.087 billion year-over-year, impacted by lower organic sales and divestitures [2]. - Despite the sales decline, Perrigo reported a net income of $7.5 million, a recovery from a $21 million net loss in the same period last year [3]. Strategic Review - Perrigo is conducting a strategic review of its infant formula business, which may lead to a potential sale [3]. - The review aims to ensure the company's portfolio is positioned for sustainable growth and free cash flow generation, as stated by the President and CEO Patrick Lockwood-Taylor [4]. - The company acknowledges that while its infant formula operations have stabilized, the changing external environment has made it less strategic in alignment with its consumer health OTC businesses [5].

Core Insights - Perrigo (PRGO) reported adjusted earnings of 80 cents per share in Q3 2025, exceeding the Zacks Consensus Estimate of 75 cents, but down 1.2% year over year due to lower sales volume [1][9] - Net sales decreased by 4.1% year over year to $1.04 billion, missing the Zacks Consensus Estimate of $1.10 billion, primarily due to weak performance in the infant formula and oral care segments [2][9] - The company has lowered its 2025 sales guidance, now expecting a decline of 2.5-3%, a shift from previous guidance of 0-3% growth, which contributed to a 12% drop in stock price during pre-market trading [7][9] Financial Performance - Sales in the Consumer Self Care Americas (CSCA) segment were $646 million, down 3.8% year over year, missing estimates of $664 million [5] - The Consumer Self Care International (CSCI) segment reported net sales of $398 million, down 4.5% year over year, also missing estimates of $432 million [6] - Organic net sales declined 4.4%, with a 5.7% drop at constant currency rates, indicating ongoing challenges in the market [3][9] Strategic Initiatives - Perrigo is initiating a strategic review of its infant formula business, which is projected to generate $360 million in net sales for 2025, representing less than 10% of total annual net sales [12] - The review is part of the company's "Three-S" plan (Stabilize, Streamline, Strengthen) aimed at maximizing shareholder value, with no specific timeline set for completion [12] Guidance Adjustments - The company has revised its adjusted EPS guidance for 2025 to a range of $2.70-$2.80, down from $2.90-$3.10, and adjusted gross margin expectations to 39% from 40% [11] - The adjusted operating margin guidance remains near 15% [11]

Core Viewpoint - Perrigo has initiated a strategic review of its infant formula business, indicating a shift in focus towards higher-margin branded products [1] Company Summary - The consumer health company, Perrigo, is reassessing its infant formula segment as part of a broader strategy to enhance profitability through branded offerings [1]

Core Insights - Perrigo reported $1.04 billion in revenue for the quarter ended September 2025, reflecting a year-over-year decline of 4.1% and an EPS of $0.80, slightly down from $0.81 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $1.1 billion, resulting in a surprise of -4.84%, while the EPS exceeded expectations by 6.67% against a consensus estimate of $0.75 [1] Financial Performance Metrics - Net Sales for Consumer Self-Care International (CSCI) were $398 million, below the average estimate of $432.27 million, marking a year-over-year decline of 4.4% [4] - Net Sales for Consumer Self-Care Americas (CSCA) reached $646 million, compared to the estimated $664.1 million, representing a decrease of 3.8% year-over-year [4] - Adjusted Gross Profit for CSCI was reported at $199 million, falling short of the estimated $228.07 million [4] - Adjusted Gross Profit for CSCA was $218 million, slightly above the average estimate of $217.28 million [4] Stock Performance - Perrigo's shares have returned -6.9% over the past month, contrasting with a +1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - For Q3 2025, organic net sales declined by 4.4%, impacted by a 1.6% decline from the global OTC business and a 2.8% decline from businesses under review [11][12] - Year-to-date, organic net sales decreased by 1.7%, primarily driven by a 0.8% impact from businesses under review and a 0.5% impact from the absence of last year's Opill launch stocking benefits [12][24] - Q3 EPS was $0.80, down one cent from the prior year, while year-to-date EPS grew 21% to $1.97 [11][21] Business Line Data and Key Metrics Changes - In the US OTC market, Perrigo gained volume share of 90 basis points across nearly every category, particularly in smoking cessation, allergy, and women's health [6][13] - The CSCI segment saw a 5.3% decline in organic net sales for Q3, primarily due to soft OTC category consumption trends, while year-to-date organic net sales grew by 0.7% [19][20] - The infant formula business experienced a 3.8% decline in Q3, with share recovery taking longer than expected [14][20] Market Data and Key Metrics Changes - US OTC volume consumption declined by 3.2%, while European OTC grew by only 0.6%, falling short of original assumptions [13][24] - The overall market consumption trends have been softer than anticipated, impacting Perrigo's net sales outlook by an estimated $150-$170 million [13][24] Company Strategy and Development Direction - The company is focused on its 3S plan: stabilize, streamline, and strengthen, which has guided its actions and priorities [8][16] - A strategic review of the infant formula business is underway, with the aim to optimize its long-term role within the Perrigo portfolio [14][47] - The sale of the dermocosmetics business is on track to close in Q1 2026, with proceeds aimed at reducing leverage [23][47] Management's Comments on Operating Environment and Future Outlook - Management noted that the current consumption trends are dynamic and unpredictable, with expectations for stabilization in 2026 [41][46] - The company remains committed to deleveraging and sustaining dividends while focusing on high-potential OTC portfolio growth [15][47] - Management expressed confidence in Perrigo's ability to capture durable demand for consumer health solutions despite current challenges [17][46] Other Important Information - The company has achieved $163 million in gross annual savings from Project Energize, exceeding initial expectations [9][18] - Operating cash flow for Q3 was $52 million, with year-to-date cash flow at $63 million [22][23] Q&A Session Summary Question: Follow-up on infant formula share and expectations - Management acknowledged that while store brand share is growing, it is at a slower pace than anticipated due to competitive pressures and market dynamics [28][29] Question: Insights on OTC and infant formula consumption changes - Management noted that OTC consumption has been volatile, with a significant decline observed in Q3 compared to previous quarters [33][34] Question: Plans for reinvestment given current market conditions - Management indicated that while priorities remain on deleveraging and maintaining dividends, there may be opportunities to increase spending in high-performing areas [38][39] Question: Current share of infant formula and future growth expectations - Management reported an approximate 16% share in infant formula, with expectations to grow to 18-20% over the next 12 months [40][41] Question: Clarification on gross margin pressure - Management confirmed that the gross margin pressure was primarily due to sales deleverage and product mix, not input costs [42][43]

Core Insights - Perrigo (PRGO) reported quarterly earnings of $0.8 per share, exceeding the Zacks Consensus Estimate of $0.75 per share, but down from $0.81 per share a year ago, indicating an earnings surprise of +6.67% [1] - The company posted revenues of $1.04 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 4.84% and down from $1.09 billion year-over-year [2] - Perrigo has surpassed consensus EPS estimates three times over the last four quarters but has not beaten revenue estimates during the same period [2] Earnings Outlook - The sustainability of Perrigo's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.02 on revenues of $1.17 billion, and for the current fiscal year, it is $2.94 on revenues of $4.37 billion [7] Industry Context - The Medical - Products industry, to which Perrigo belongs, is currently in the bottom 40% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5] Stock Performance - Perrigo shares have declined approximately 21.5% since the beginning of the year, contrasting with the S&P 500's gain of 15.1% [3] - The estimate revisions trend for Perrigo was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6]