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Perrigo Third Quarter Net Income Falls on Costs from Deals

Tue, 05/07/2013 - 1:59pm
The Associated Press

Perrigo Co. said Tuesday that its net income slipped 3 percent in the fiscal third quarter on costs related to two acquisitions. But its earnings and revenue missed Wall Street expectations, and its shares fell almost 4 percent.

The healthcare and nutritional products company expanded into animal care in 2012 by buying Sergeant's Pet Care Products for $285 million. In February it bought Rosemont Pharmaceuticals for $283 million in a deal intended to expand its U.K. business.

Perrigo said its net income fell to $111.9 million, or $1.18 per share, for the three months ended March 30 from $115.7 million, or $1.23 per share.

The company said it earned $1.42 in the latest quarter if one-time items are excluded. Analysts surveyed by FactSet expected higher earnings of $1.44 per share,

Revenue rose 18 percent to $919.8 million from $778 million. Analysts expected $933.3 million in revenue.

Perrigo said most of the revenue gains came from the newly-acquired Sergeant and Rosemont.

The company said revenue from its consumer health care business advanced 20 percent to $536.7 million. Nutritional product revenue rose 13 percent to $133.3 million and prescription drug revenue grew 22 percent to $189.4 million. Drug ingredient revenue increased 11 percent to $41.1 million.

Perrigo maintained its full-year forecast, calling for adjusted net income of $5.53 to $5.73 per share. Analysts expect $5.64 per share on average.

Shares of Perrigo fell $4.43, or 3.7 percent, to $114.41 in afternoon trading.

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