) to beat expectations when it releases its second quarter fiscal
2013 results before the opening bell on Feb 1, 2013. The
company's fiscal year ends on the last Saturday of June every
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PERRIGO COMPANY (PRGO): Free Stock Analysis
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Why a Likely Positive Surprise
Our proven model shows that Perrigo Company is likely to beat
earnings because it has the right combination of two key
(Expected Surprise Prediction): This is because the Most Accurate
estimate stands at $1.33 while the Zacks Consensus Estimate is
lower at $1.32 per share. This results in a difference of +0.76%.
Zacks Rank #3 (Hold)
: Note that stocks with Zacks Rank of #1, #2 and #3 have a
significantly higher chance of beating earnings. The sell rated
stocks (#4 and #5) should never be considered while going into an
The combination of Perrigo Company's Zacks Rank # 3 (Hold) and
+0.76% ESP causes us to expect a positive earnings beat on Feb 1,
What is Driving the Better Than Expected
Perrigo Company is expected to deliver a positive earnings
surprise in the second quarter of fiscal 2013 driven by increased
This healthcare company has delivered positive earnings surprises
consecutively over the last 4 quarters with an average beat of
6.00%. The impressive performance over the last few quarters is
attributable to solid revenues, primarily due to impressive sales
at the generic (Rx Pharmaceuticals) segment of Perrigo.
Newly launched products have also boosted revenues at Perrigo
over the last few quarters. During the first quarter fiscal 2013
conference call, the company announced its intention to launch
more than 60 new products in fiscal 2013, which could generate
revenues of more than $190 million. The company intends to launch
more than 1 new product per week in fiscal 2013.
Earlier in the month, Perrigo announced that it has launched
over-the-counter (OTC) nicotine polacrilex mini lozenge, 2 mg
(mint flavor) and 4 mg (mint flavor). The mint flavored mini
lozenge can be compared to
) Nicorette mini lozenge.
Other Stocks to Consider
Perrigo Company, which develops, manufactures and distributes OTC
and generic prescription pharmaceuticals among others, is not the
only company looking up this earnings season. We also see likely
earnings beat coming from other players in the generic market.
) has Earnings ESP of +4.69% and carries a Zacks Rank #2 (Buy).
) has Earnings ESP of +3.92% and carries a Zacks Rank #3