Perrigo shares slump after earnings miss and profit warning

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Perrigo Plc PRGO, -1.00%, the Dublin-based consumer self-care products maker, posted weaker-than-expected third-quarter earnings on Wednesday and issued a profit warning for the full year, after the pandemic added to supply chain issues to leave it with the most unshipped orders ever amid a shortage of trucks and drivers. Perrigo posted a loss of $54 million, or 40 cents a share, for the quarter, after income of $26 million, or 19 cents a share, in the year-earlier period. Adjusted per-share earnings came to 45 cents, below the 65 cent FactSet consensus. Sales rose to $1.04 billion from $1.00 billion a year ago, also below the FactSet consensus of $1.05 billion. CEO Murray S. Kessler said the challenging operating environment falls into three categories: ” a historically weak cough/cold season affecting first quarter sales and manufacturing efficiencies, higher input costs and the sudden supply chain disruption, primarily in the form of a shortage of truck drivers, which began in the third quarter. In combination, these factors are forecasted to negatively impact total year adjusted diluted EPS by $0.79, which could only be partially offset, leading us to lower our earnings guidance.” The company is now expecting full-year adjusted EPS of $2.00 to $2.10, well below the FactSet consensus of $3.05. Shares fell 10% premarket and are up 6% in the year through Tuesday, while the S&P 500 SPX, -0.35% has gained 25%.

This article was originally published by Marketwatch.com. Read the original article here.

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