Why Is Perrigo (PRGO) Down 3.1% Since Last Earnings Report?

Perrigo (PRGO) shares have declined 3.1% since its last earnings report, underperforming the S&P 500, with consensus estimates trending downward by 5.22% over the past month. While Perrigo holds a Zacks Rank #2 (Buy), indicating potential for above-average returns, estimates have been broadly revised downward. In comparison, GE HealthCare Technologies (GEHC), a peer in the same industry, has gained 1.5% over the same period, reporting a 2.7% year-over-year revenue increase and EPS of $1.01.

Analysis

Perrigo (PRGO) shares have experienced a 3.1% decline over the past month since its last earnings report, underperforming the S&P 500. This movement coincides with a notable downward trend in fresh earnings estimates, with the consensus estimate shifting -5.22%. Despite these negative revisions, Perrigo holds a Zacks Rank #2 (Buy), suggesting expectations of above-average returns in the coming months. The company's VGM Scores highlight a dichotomy: a strong 'A' for Value, placing it in the top quintile for this strategy, but subpar 'D' grades for both Growth and Momentum, contributing to an overall VGM Score of 'B'. In contrast, GE HealthCare Technologies (GEHC), a peer in the Zacks Medical - Products industry, saw its shares gain 1.5% over the same period. GE HealthCare reported revenues of $4.78 billion for the quarter ended March 2025, a 2.7% year-over-year increase, and an EPS of $1.01, up from $0.90 a year ago. However, GE HealthCare's outlook for the current quarter projects an EPS of $0.91, a 9% decrease year-over-year, and it carries a Zacks Rank #4 (Sell) with a VGM Score of 'C'.

Key Decisions for Investors

• Investors should carefully weigh Perrigo's Zacks Rank #2 (Buy) and strong 'A' Value score against its recent 3.1% share price decline, a significant 5.22% downward revision in consensus estimates, and weak 'D' grades for Growth and Momentum.
• Consider the divergent trends within the Medical - Products industry, where Perrigo shows mixed signals while peer GE HealthCare, despite recent revenue growth of 2.7% and higher EPS, faces a projected 9% earnings decline and holds a Zacks Rank #4 (Sell).
• Monitor upcoming earnings releases and further analyst estimate revisions for Perrigo, as the current data presents a mixed outlook that could lead to either a price recovery or continued underperformance.