Perrigo CompanyPRGO is set to report third-quarter 2015 results on Oct 22 before the market opens. Last quarter, the company delivered a positive earnings surprise of 10.66%. Let's see how things are shaping up for this announcement.
Will Rx PharmaceuticalsPerform Well?
The Rx Pharmaceuticals (generics) segment is expected to perform well driven by new product sales. Branded Consumer Healthcare could also perform well. However, the Consumer Healthcare segment could underperform.
The company is constantly making acquisitions to expand its business and drive growth. The deal is in line with its 'Base Plus Plus Plus' strategy, focused on the expansion of the company's durable base business by pursuing selective, accretive transactions. In Aug 2015, the company acquired a leading U.S. OTC scar management brand, ScarAway, from Enaltus. The company also acquired GlaxoSmithKline's GSK portfolio of established OTC brands. This transaction is also expected to be immediately accretive to the company's calendar 2015 adjusted earnings per share.
For the third quarter, the Zacks Consensus Estimate is $1.74. The company expects 2015 earnings in the range of $7.50 to $8.00 per share, representing an increase of 20% to 28%. We could see an updated guidance based on its third-quarter performance.
Meanwhile, Mylan MYL is looking to acquire Perrigo and has launched a formal offer to exchange all outstanding ordinary shares of Perrigo. Investor focus is expected to remain on Mylan-Perrigo updates in the near term.
Stock That Warrant a Look
A health care stock that you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat this quarter is Anika Therapeutics Inc. ANIK .
The Earnings ESP for Anika is +2.94% and it carries a Zacks Rank #1. The company is expected to release results on Oct 28.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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