Trump Tariffs Could Have 'Significant Impact' On Perrigo Earnings, Says JP Morgan

Core Viewpoint - J.P. Morgan analysts indicate that Perrigo Company plc's first-quarter 2025 earnings will be significantly influenced by the potential impact of tariffs, which could affect near-term earnings [1][4]. Group 1: Earnings Forecast - Analysts project adjusted earnings of 55 cents per share and sales of $1.09 billion for Perrigo [1]. - The company is expected to face a low to mid-single-digit impact on global cost of goods sold (COGS) on an annualized basis due to tariffs [2]. Group 2: Business Impact - The oral care and infant formula segments are particularly affected, with sourcing from China and India [3]. - While the company aims to mitigate the impact through supply chain efficiencies and price increases, challenges remain in predicting short-term effects on earnings [3]. Group 3: Market Reaction - Perrigo's stock has declined by 4.70%, trading at $24.13 [4]. - The company has historically struggled to pass on price increases in a timely manner, making it difficult to absorb rising costs due to lower profit margins compared to peers [5].