) to report in line third quarter fiscal 2013 results before the
opening bell on May 7. The company's fiscal year ends on the last
Saturday of Jun every year.
Factors to Consider
Perrigo has lately been quite active on the acquisition front. On
Apr 1, 2013 Perrigo announced the completion of the acquisition
of companion animal health company, Velcera.
The deal, which has strengthened Perrigo's position in the
over-the-counter (OTC) retail pet healthcare market, is
encouraging. The acquisition adds erstwhile Velcera's PetArmor
franchise of Flea and Tick therapies to Perrigo's product
In Feb 2013, Perrigo acquired UK-based privately held
pharmaceutical company, Rosemont Pharmaceuticals Ltd. By
acquiring Rosemont Pharma, Perrigo aims to strengthen its
position in the UK oral liquid formulations space. We are
impressed by Perrigo's growth-by-acquisition strategy.
In Mar 2013, Perrigo commenced the shipping of its generic
version of Adams Respiratory Therapeutics' expectorant Mucinex
(600mg extended-release tablets). Adams Respiratory Therapeutics
is a subsidiary of Reckitt Benckiser Group. The launch of the
store brand version of Mucinex further strengthens its dominant
position in the store brand OTC drug market. We note that Perrigo
competes with players like
Dr. Reddy's Laboratories, Ltd.
) in the store brand space.
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Our proven model does not conclusively show that Perrigo is
likely to beat earnings estimates this quarter. This is because a
stock needs to have both a positive earnings Expected Surprise
Prediction (ESP) (Read: Zacks Earnings ESP: A Better Method) and
a Zacks Rank #1, 2 or 3 for this to happen.
: The ESP, which represents the difference between the Most
Accurate estimate and the Zacks Consensus Estimate, is 0.00%.
This is because both the Most Accurate Estimate and Zacks
Consensus Estimate currently stand at $1.44 per share.
Zacks Rank #3 (Hold)
: Perrigo's Zacks Rank #3 lowers the predictive power of ESP
because the Zacks Rank #3 when combined with an ESP of 0.00%
indicates the possibility of in line results.
Onyx Pharmaceuticals, Inc.
) to post earnings beat this season as it has the right
combination of elements to do so. Onyx has an Earnings ESP of
+16.95% and carries a Zacks Rank #2 (Buy).