Perrigo to Report Q2 Earnings: What's in Store for the Stock?

Perrigo (PRGO) is scheduled to report Q2 2025 earnings on August 6, with consensus estimates projecting $1.08 billion in sales and $0.59 EPS. Sales are anticipated to be pressured by exited businesses, product line reductions, and adverse currency movements. Investors will focus on updates regarding the €327 million Dermacosmetics business sale to KKR-backed Kairos Bidco AB and the company's outlook on macroeconomic impacts. Despite a history of generally beating estimates and outperforming the industry year-to-date, Zacks' model, with a 0.00% Earnings ESP and a Zacks Rank of 2, does not currently predict an earnings beat for PRGO.

Analysis

Perrigo Company is approaching its second-quarter 2025 earnings report on August 6 with consensus estimates at $1.08 billion in revenue and $0.59 in earnings per share. Top-line results are expected to face headwinds from the divestiture of non-core businesses, discontinuation of certain product lines, and unfavorable foreign currency movements. Key focal points for investors will be management's commentary on the progress of the €327 million sale of its Dermacosmetics business to the KKR-backed Kairos Bidco AB and any updates to its outlook concerning macroeconomic pressures. Historically, the company has demonstrated a decent performance, beating earnings estimates in three of the last four quarters with an average surprise of 4.36%, and its stock has outperformed the industry year-to-date. However, a proprietary quantitative model from Zacks indicates a low probability of an earnings beat this quarter, citing a neutral Earnings ESP of 0.00% despite a Zacks Rank #2 (Buy), presenting a conflicting signal for investors when weighed against past performance.

Key Decisions for Investors

• Investors should scrutinize management's forward-looking guidance for specific details on the anticipated impact of macroeconomic pressures and the financial drag from exited businesses.
• Monitor the earnings call for definitive updates on the timeline and expected cash realization from the pending €327 million Dermacosmetics business divestiture, a key element of its restructuring.
• Given the conflict between the company's positive earnings surprise history and the model's neutral 0.00% Earnings ESP, a cautious stance may be warranted until post-release clarity emerges on revenue trends and margins.
• Pay close attention to the performance of the core Consumer Self Care Americas (CSCA) and International (CSCI) segments against their respective estimates of $636 million and $445 million to gauge the health of the ongoing business.