Perrigo Beats on Q2 Earnings & Sales, Stock Down on '25 Sales View Cut

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]