Perrigo Co. (PRGO) analysts are steadily increasing estimates for the drug company, fueled by the latest earnings surprise.
Company Description
Perrigo Co. makes OTC and generic prescription drugs, nutritional products, pharmaceutical ingredients, and other consumer products. Currently it is the biggest manufacturer of store brand OTC pharmaceuticals. Operations are in North America and Europe.
Revenues Spike
In a Nov 2 report, the company announced first-quarter results that included revenue of $528 million. This was up 16% year-over-year. Net income came in at $61 million, or 66 cents per share.
The Zacks Consensus Estimate was 49 cents, making this a 35% beat and the third consecutive earnings surprise.
Estimates Climbing
Following the announcement, full-year estimates jumped to $2.42, from $2.10. The Zacks Consensus Estimate for next year is now $2.62, up from $2.32.
This year’s projected growth rate is a solid 29%, with an additional 8% in the next fiscal year.
Shares of PRGO are trading at great values. One share will cost you just over 16 times forward earnings. Also, the PEG ratio is at 1.0 times, meaning the projected growth is priced fairly. The company also maintains a dividend of 25 cents per year.
The Chart
Below you can see the gradual increase in earnings for Perrigo. Analysts have been raising full-year estimates consistently over the past few years and the currently levels are the highest in years.
Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader serviceZacks Investment Research
