Perrigo (PRGO) Q3 Earnings Surpass Estimates

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]