Perrigo(US:PRGO) ZACKS·2025-11-05 20:21Core 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]