A month has gone by since the last earnings report for Perrigo (PRGO). Shares have lost about 9% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Perrigo due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Q1 Earnings Beat Estimates, Sales Miss
Perrigo reported first-quarter 2026 All In adjusted earnings per share (EPS) of 43 cents, which beat the Zacks Consensus Estimate of 39 cents. The reported figure declined 28.3% year over year due to the impact of lower sales volumes and the carryover impact of prior-year manufacturing volumes in U.S. OTC and Infant Formula.
All In net sales declined 7.2% year over year to $969.2 million and missed the Zacks Consensus Estimate of $1.01 billion. The decline was attributed to weaker consumer demand in the United States and Europe due to lower cough and cold incidents and retailer inventory destocking, partially offset by growth in Infant Formula and Women’s Health products.
In the first quarter of 2026, All In sales rose 0.1% year over year on account of exited businesses and product lines and benefited from 2.9% favorable currency movements. At constant currency (excluding foreign currency translation), sales fell 10%. Organic net sales (excluding the effects of acquisitions and divestitures and the impacts of currency) declined 9.9%.
Beginning in 2026, the company began reporting results under two perspectives — “All In” and “Core”. “All In” reflects historical operations and “Core” represents the go-forward business excluding Infant Formula and announced divestitures, primarily the Dermacosmetics unit.
Core adjusted EPS for the first quarter was 40 cents, down 20% year over year. Perrigo recorded $842 million in core adjusted sales, down 8.3% year over year.
Segment Discussion
Self Care: The segment’s net sales in the first quarter came in at $543.3 million, down 11.5% year over year, primarily due to lower consumption in the United States and Europe.
SpecialtyCare: The segment reported net sales of $207 million, up 4% from the year-ago period, driven mainly by growth in the Women's Health category.
Infant Formula: In this segment, net sales rose 2.1% year over year to $89.7 million, driven by growth in contract infant formula.
Under the All Other category, net sales decreased 9.5% year over year to $129.2 million.
Perrigo ended the first quarter with cash and investments of $357.2 million compared with $531.6 million as of Dec. 31, 2025.
2026 Guidance
Building on current business conditions and expected savings from the company's organizational efficiency program, Perrigo reaffirmed its financial guidance for full-year 2026.
The company expects All In net sales to decline by 1.5%-5.5% year over year in 2026. All In adjusted EPS is projected to be in the range of $2.00-$2.30.
For its Core business, sales are forecast to range from a 3% decline to 1% growth. Core adjusted earnings per share are expected to be in the range of $2.25-$2.55.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -15.83% due to these changes.
VGM Scores
Currently, Perrigo has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Perrigo has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Perrigo is part of the Zacks Medical - Products industry. Over the past month, Zimmer Biomet (ZBH), a stock from the same industry, has gained 4%. The company reported its results for the quarter ended March 2026 more than a month ago.
Zimmer reported revenues of $2.09 billion in the last reported quarter, representing a year-over-year change of +9.3%. EPS of $2.09 for the same period compares with $1.81 a year ago.
For the current quarter, Zimmer is expected to post earnings of $1.99 per share, indicating a change of -3.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days.
Zimmer has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Perrigo Company plc (PRGO): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).