Perrigo's fiscal 2Q profit rises 6 percent
Perrigo Co.'s fiscal second quarter earnings climbed 6 percent in a performance that topped Wall Street expectations, as revenue gains from acquisitions and the over-the-counter drugmaker's consumer health care segment countered rising expenses.
The Allegan, Mich., company also said Friday that it will spend $160 million to buy Velcera Inc., which makes the flea and tick treatment PetArmor.
In the three months that ended Dec. 29, Perrigo earned $106 million, or $1.12 per share. That compares with net income of $99.7 million, or $1.06 per share during the final quarter of 2011.
Adjusted earnings, which exclude one-time items, were $1.36 per share.
Revenue climbed more than 5 percent to $883 million.
Analysts expected, on average, earnings of $1.31 per share on $879.5 million in revenue, according to data provider FactSet.
Company shares climbed 7.4 percent, or $7.46, to $107.97 in morning trading Friday as the broader markets gained.
Perrigo makes over-the-counter, store brand and generic drugs, infant formula and dietary supplements, among other products.
The company said revenue from its consumer health care segment climbed 14 percent to $539 million in the quarter, helped in part by growth in the sale of analgesics and smoking cessation products. Acquisitions also added to that segment's revenue.
In contrast, nutritionals segment revenue fell nearly 5 percent to $122 million when compared to the 2011 quarter, which had an extra week of sales. Revenue from the company's Rx Pharmaceuticals segment also fell more than 8 percent to $162.5 million.
Total operating expenses also rose 7 percent to $143.3 million, as selling and administration costs climbed.
Perrigo reaffirmed its full-year 2013 forecast for adjusted earnings ranging between $5.45 and $5.65 per share. Analysts expect, on average, earnings of $5.54 per share.
Perrigo said Velcera sales for 2012 totaled about $60 million, and its products will bolster the Sergeant's Pet Care portfolio it acquired last fall. It expects the Velcera deal to close this year.