Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Analyst Ratings and Price Targets - Pfizer Inc (NYSE:PFE) has a dividend yield of 7.01%. Analyst Tim Anderson from B of A Securities maintained a Neutral rating and raised the price target from $28 to $30, with an accuracy rate of 75% [7] - Bristol-Myers Squibb Co (NYSE:BMY) has a dividend yield of 5.66%. Analyst Andrew Baum from Citigroup maintained a Neutral rating and decreased the price target from $51 to $47, with an accuracy rate of 70% [7] - Perrigo Company PLC (NYSE:PRGO) has a dividend yield of 5.36%. Analyst Susan Anderson from Canaccord Genuity maintained a Buy rating and cut the price target from $42 to $40, with an accuracy rate of 64% [7] Group 2: Recent News - Pfizer announced initial results from a clinical trial called HER2CLIMB-05 [7] - Bristol Myers Squibb and insitro announced the next phase of their collaboration for new treatments for amyotrophic lateral sclerosis [7] - Perrigo reported worse-than-expected second-quarter financial results [7]

Core Insights - Perrigo Company plc has partnered with Chillhouse to promote Opill®, the first over-the-counter birth control pill in the U.S., emphasizing self-care and wellness for women [1][2][3] Company Overview - Perrigo is a leading provider of Consumer Self-Care Products and over-the-counter health solutions, focusing on enhancing individual well-being [6] - Chillhouse is a Latina-founded self-care brand known for its innovative nail products and wellness experiences, promoting self-expression and empowerment [7] Product Launch - The partnership has introduced three limited edition sets of press-on nails named Same Time Tomorrow, OTC Chill, and In Control, which align with the use of Opill® [2][4] - These products will be available for purchase on Chillhouse.com and Amazon starting October 9, while supplies last [4] Social Impact Initiative - For every Opill®-themed Chill Tips set sold, Perrigo will donate one pack of Opill® to the NY Birth Control Access Project, supporting reproductive health access [3][8] - The NY Birth Control Access Project focuses on improving contraceptive access and training advocates for reproductive justice [8] Event Promotion - An "Opill and Chill" event will take place on October 9 at Chillhouse Soho in NYC, featuring free Chill Tip applications and educational discussions on reproductive health [3]

Core Insights - Perrigo Company plc is identified as one of the most oversold healthcare stocks in 2025, focusing on high-growth, high-margin categories in North America and Europe [2] Financial Performance - In Q2 2025, Perrigo reported net sales of $1.06 billion, reflecting a 0.9% decline year-over-year due to divestitures and exited products, particularly in infant formula and digestive health [3] - The company is experiencing soft seasonal demand in allergy, sun care, and blister care categories, along with a slower-than-expected recovery in infant formula [3] Strategic Initiatives - Perrigo is implementing a "Three-S" strategy—Stabilize, Streamline, and Strengthen—by divesting non-core assets, including the Dermacosmetics business, which is expected to close in Q1 2026 [4] - This strategy aims to streamline operations, reinforce the balance sheet, accelerate debt reduction, and enable a greater focus on its core self-care portfolio [4] Operational Enhancements - The company is enhancing operations through a global operating model upgrade and strengthened brand-building capabilities, contributing to market share gains in key segments [5] - Perrigo is emphasizing innovation and expansion in pain and sleep aids, nutrition, and upper respiratory products, aligning resources with higher-growth categories [5]

Core Insights - Perrigo Company plc is identified as one of the 12 cheap healthcare stocks to buy now [1] - The company specializes in over-the-counter and self-care products, generic prescription pharmaceuticals, and active pharmaceutical ingredients, with a strong presence in private-label consumer health products [2] Strategic Developments - Perrigo is advancing its strategic plan to "Stabilize, Streamline, and Strengthen" by divesting non-core businesses, including the sale of its Dermacosmetics branded business to KKR-managed Kairos Bidco AB for up to €327 million, expected to close in Q1 2026 [3] - This divestiture reflects the company's focus on its core self-care and private-label consumer health offerings [3] Leadership and Investor Engagement - Insider purchases by executives, including EVP Charles Atkinson and Chief Scientific Officer Lennox Abigail, totaling $23,200, indicate management's confidence in the company's growth prospects [4] - Senior management, including President and CEO Patrick Lockwood-Taylor, participated in the Barclays Global Consumer Staples Conference, emphasizing ongoing investor engagement and transparency regarding strategic direction and product pipeline [5]

Company Overview - Perrigo Company plc is a leading pure-play self-care company with over a century of experience in providing high-quality health and wellness solutions primarily in North America and Europe [2] - The company is a pioneer in the over-the-counter (OTC) self-care market, offering trusted self-care solutions that do not require a prescription, ensuring accessibility and choice for consumers across various molecules, dosage forms, and value tiers [2] Business Model - Perrigo's unique business model leverages complementary businesses, where cash-generative store brand private label offerings fuel investments for leading brands, including Opill®, Mederma®, Compeed®, EllaOne®, and Jungle Formula® [3] Upcoming Events - The President and CEO Patrick Lockwood-Taylor and CFO Eduardo Bezerra are scheduled to participate in one-on-one investor meetings at the Barclays Global Consumer Staples Conference on September 3rd, 2025 [1]

Summary of Conference Call Company Overview - The company discussed its ongoing strategy, emphasizing that it is on track with its 3S plan: stabilizing the business, streamlining operations, and strengthening the brand [1][2] - The company operates in a dynamic consumer environment, particularly in the U.S. market [2] Key Industry Insights - The U.S. store brand is gaining market share, with a category-led growth model showing meaningful results [3][4] - Infant formula, which constitutes about 10% of revenue, remains a strategic priority, with investments calibrated to balance resilience and maximize returns [3][7] - The fastest-growing segment of the infant formula market currently lacks a store brand equivalent, presenting a significant opportunity [8] Financial Performance - The company reaffirmed its fiscal year 2025 financial outlook, expecting organic net sales growth towards the lower end of the target range of 1.5% to 4.5% [8] - The Americas business is expected to drive growth, with a projected organic growth of approximately $200 million in the second half compared to the first half [9] - The OTC business is anticipated to contribute 75% of the growth, with net new business wins of $70 to $80 million [10] - The company is on track to deliver an adjusted gross margin target of 40% [11] Strategic Initiatives - Project Energize and supply chain reinvention are yielding tangible benefits, with brand-building investments showing early results [5] - The company is focusing on regaining share among new mothers in the infant formula category, with new SKUs being rolled out [22][24] - The company has seen a strengthening of store brand OTC share, benefiting from consumer trading down to private label products [28] Market Dynamics - The company did not experience significant destocking at retail, and its OTC store brand has grown share [26] - The company is leveraging its extensive portfolio of 100 molecules to drive growth across multiple brands and geographies [35][38] - The UK market has achieved 80% household penetration, indicating strong brand presence [40] Future Outlook - The company expects significant revenue growth from the recovery of the infant formula segment and increasing store brand OTC household penetration [66] - There is a focus on improving operational leverage and expanding into new markets to enhance margins [71] - The company aims to improve free cash flow over net sales and reduce net leverage to attract more investors [76] Additional Considerations - The company anticipates a potential impact of $10 to $20 million on COGS due to tariffs, with plans to offset this through pricing strategies [61][63] - The company is committed to long-term value creation and is focused on executing its strategy with discipline [15][16]

Core Insights - The performance of Perrigo's international operations is critical for understanding its financial strength and growth potential [1][2][3] Group 1: International Revenue Performance - Perrigo's total revenue for the quarter was $1.06 billion, a decrease of 0.9% from the previous year [4] - Revenue from "All other countries" was $23.7 million, accounting for 2.2%, which was a surprise decrease of 14.75% compared to the expected $27.8 million [5] - Europe generated $421.7 million, constituting 39.9% of total revenue, exceeding the projected $398.44 million by 5.84% [6] Group 2: Future Revenue Forecasts - Analysts expect Perrigo to report total revenue of $1.12 billion in the current fiscal quarter, indicating a 3% increase from the prior year [7] - For the full year, total revenue is projected at $4.44 billion, reflecting a 1.6% increase from the previous year [8] Group 3: Market Context and Stock Performance - The company's reliance on international markets presents both opportunities and challenges, necessitating close monitoring of revenue trends [9] - Perrigo's stock has declined by 18.1% over the past month, contrasting with a 2.7% increase in the Zacks S&P 500 composite [13]

Core Viewpoint - Perrigo (PRGO) has experienced a significant downtrend, with a 16.3% decline in stock price over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with a reading below 30 typically indicating this condition [2]. - PRGO's current RSI reading is 21.24, indicating that the heavy selling pressure may be exhausting itself, which could lead to a reversal in the stock's trend [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts regarding an increase in earnings estimates for PRGO, with a 0.3% rise in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - PRGO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].

Core Insights - Perrigo (PRGO) reported adjusted earnings of 57 cents per share for Q2 2025, missing the Zacks Consensus Estimate of 59 cents, but showing a year-over-year increase of 7.5% primarily due to lower interest expenses [1][7] - Net sales decreased by 0.9% year-over-year to $1.06 billion, falling short of the Zacks Consensus Estimate of $1.08 billion, attributed to lost sales from exited businesses and product lines, although partially offset by favorable currency movements [1][2] Sales Performance - Sales dropped 2.5% year-over-year due to exited businesses and product lines, but were positively impacted by a 1.7% favorable currency effect; at constant currency, sales fell 2.6% [2] - Organic net sales declined by 0.1%, indicating a slight decrease when excluding acquisitions, divestitures, and currency impacts [2] Segment Analysis - Consumer Self Care Americas (CSCA) reported net sales of $622 million, down 1.9% year-over-year, with growth in Nutrition, Healthy Lifestyle, and Upper Respiratory categories offset by declines in Digestive Health and Oral Care; organic net sales also fell by 1.9% [4] - Consumer Self Care International (CSCI) reported net sales of $434 million, up 0.7% year-over-year, driven by favorable currency translation and organic sales growth, although at constant currency, sales decreased by 3.5%; organic sales increased by 2.7% [5] Financial Guidance - Perrigo lowered its financial guidance for total sales in 2025, now expecting growth towards the lower end of the previously issued range of 0-3%, primarily due to challenges in the infant formula industry and market consumption trends [6][10] - Despite the downward revision in sales, the company maintained its adjusted EPS guidance of $2.90-$3.10, with an adjusted gross margin around 40% and an adjusted operating margin near 15% [10] Market Reaction - Following the guidance revision, Perrigo's stock price declined by 6% during pre-market trading [6]

Financial Data and Key Metrics Changes - Perrigo's organic net sales growth in Q2 was flat compared to the prior year, with OTC brand growth of 3.6% [9] - Year-to-date organic growth was also flat, but up nearly 1% excluding prior year benefits and lost distribution [9] - Gross margin declined due to divested businesses and isolated production variability in infant formula, with organic operating income growth at 28.3% year-to-date [11][30] - EPS in Q2 grew 7.5% or 12.5% organically, and year-to-date EPS increased by over 50% organically [12][35] Business Line Data and Key Metrics Changes - The infant formula business net sales grew 9%, driven by store brand formula, while the Good Start brand experienced a significant decline due to lost distribution [6][16] - Pain and sleep aids grew 8%, contributing to total growth, while upper respiratory products added 0.7 points primarily from new distribution [12][13] - OTC brands delivered organic net sales growth of 3.6% year-over-year, with Jungle Formula growing 14% and Compie achieving record share in several European markets [13][14] Market Data and Key Metrics Changes - Declining total category consumption in the U.S. and decelerating consumption in the EU limited top-line growth, but store brands gained share as consumers sought value [10] - Store brand OTC is gaining share, with Perrigo's allergy product sales up almost 19% at a key retailer despite overall category decline [20][64] - The company is seeing an acceleration in consumers trading down to private label products, with store brand OTC gaining volume and unit share [64] Company Strategy and Development Direction - The company is focused on its 3S plan: stabilize, streamline, and strengthen, with significant steps taken to enhance its self-care organization [5][8] - The sale of the derma cosmetics business for up to EUR 327 million is aimed at sharpening strategic focus on core high-growth brands [6][21] - The company is scaling its category-led market activation growth model to unlock portfolio potential and enhance brand building activities [7][23] Management's Comments on Operating Environment and Future Outlook - Management described the market as fluid and volatile, with heavy promotions from competitors impacting share growth expectations [44] - Despite challenges, the company remains confident in achieving its EPS target, needing only a 3% increase in the second half compared to the previous year [48][49] - The company reaffirmed its full-year EPS outlook, expecting strong double-digit growth despite anticipated lower net sales growth [38][90] Other Important Information - The company is on track to achieve its 2025 operating cash flow conversion target of approximately 100% to adjusted net income [36] - Net leverage to adjusted EBITDA is currently at 3.9x, with a target of approximately 3.5x by year-end [36][37] - The company plans to offset tariff impacts through strategic pricing actions and supply chain adjustments [40][63] Q&A Session Summary Question: Insights on the infant formula market and competitor responses - Management noted that the market is fluid with heavy promotions from brands, and while store brand volume continues to grow, share growth has been dampened by new entrants [44][45] Question: Building blocks for achieving guidance in the second half - Management confirmed that the EPS requirement for the second half aligns with guidance, with significant growth expected from new OTC store brand contracts and improved demand generation activities [51][53] Question: Strategic pricing actions and retailer conversations - Management indicated that discussions with retailers are positive, with expectations to offset tariff impacts through pricing actions across both branded and private label OTC [62][63] Question: Changes in expectations for Opill and marketing plans - Management expressed satisfaction with Opill's performance, noting double consumption and plans to continue targeted marketing to specific consumer cohorts [74][75] Question: Confidence in addressing increased product scrap in infant formula - Management reassured that the increased scrap was an isolated incident caught by quality systems, and confidence is high that it will not continue to impact margins [82][84] Question: Long-term guidance implications from updated expectations on infant formula - Management stated that while the ramp-up has been slower than expected, there is no change to long-term outlook, and efforts to rebuild market share continue [86][87]