) fourth quarter fiscal 2012 (ended June 30, 2012) adjusted
earnings of $1.28 per share beat the Zacks Consensus Estimate of
$1.26 per share. The quarter's earnings increased 25.5% from the
year-ago period driven by higher revenues.
Net sales in the reported quarter climbed 18% to $832 million.
Revenues were aided by the inclusion of $58 million of net sales
from Paddock Laboratories (acquired by Perrigo in 2011) and $10
million from CanAm Care (whose assets were acquired by Perrigo in
January 2012). However, revenues fell short of the Zacks Consensus
Estimate of $854 million.
Quarter in Detail
Perrigo reports revenue from the following five segments:
Consumer HealthCare (CHC), Nutritionals, Rx Pharmaceuticals, Active
Pharmaceutical Ingredients (API) and other.
Consumer Healthcare: Perrigo reported CHC revenue of $484
million in the fourth quarter, up 12% over the prior year. Net
sales growth was driven by improved sales of existing products
primarily in the cough/cold, analgesics and smoking cessation units
coupled with strong new product sales, primarily in the
gastrointestinal and dermatological care units. Segmental sales
were also aided by the inclusion of results of CanAm Care. Adjusted
gross profit for the segment climbed 12.7% to $151 million in the
final quarter of fiscal 2012.
Nutritional: Perrigo reported Nutritional quarterly revenue of
$135 million, up 10%. Strong sales of newly launched products,
primarily in the infant formula sub-group, contributed to the
Rx Pharmaceuticals: The Rx Pharmaceuticals segment performed
impressively with net sales climbing 70% to $157 million in the
fourth quarter of fiscal 2012. The huge increase was primarily
driven by the acquisition of Paddock Laboratories.
Active Pharmaceutical Ingredients (API): The company reported
API sales of $38 million, up 2.7% over the prior year.
Other: Segmental sales declined 5.6% to $17 million.
Fiscal 2012 Results
For fiscal 2012, Perrigo's adjusted earnings of $4.99 per share
beat the Zacks Consensus Estimate of $4.97 per share. Also, fiscal
2012 adjusted earnings spiked 24.4% from the year-ago figure due to
higher net sales. Net sales for fiscal 2012 came in at $3.2
billion, up 15% from the prior-year period, but in line with the
Zacks Consensus Estimate.
Adjusted gross margin at Perrigo improved 170 basis points to
$37.1% in fiscal 2012. The improvement was attributable to the
acquisition of Paddock Laboratories and strong sales of newly
Fiscal 2013 Projection
Apart from announcing financial results, Perrigo provided
earnings projection for fiscal 2013. The company expects adjusted
earnings per share in the range of $5.30-$5.50, up 6%-10% year over
year. The Zacks Consensus Estimate for fiscal 2013 currently stands
at $5.40 per share, well within the company's projected range.
We believe Perrigo has a sustainable and diversified product
portfolio. The company's strong position in the brand
over-the-counter pharmaceutical market and growing generics and API
businesses should drive growth in the coming quarters. We are also
impressed by Perrigo's strong pipeline.
PERRIGO COMPANY (PRGO): Free Stock Analysis
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