Needham & Company Maintains a 'Hold' on Perrigo Co. (PRGO); Disappoints on Top-line Expectations
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Price: $13.07 +0.23%
Rating Summary:
12 Buy, 14 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
Rating Summary:
12 Buy, 14 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
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Needham & Company maintains a 'Hold' on Perrigo Co. (NASDAQ: PRGO).
Analyst, Elliot Wilbur, said, "PRGO has put an end to a 3.5-year string of strong beat-and-raise Qs with disappointing 3QF12 results. The softness was largely the result of weak consumer healthcare sales, even accounting for impact of weak cough/cold season. The Nutritionals segment performance also fell short of expectations. Only source of strength continues to be the Generic Rx business with strong sales growth and margin performance. Bottom-line performance exceeded estimates but only due to one time benefits (tax and other income). FY2012 guidance was updated to reflect diminishing growth strength in key businesses. We remain at Hold on shares given that upside seems to be predicated on the continuing strong performance of the generic segment (represents ~27% of FY3Q121 sales) and we see more favorable reward/risk opportunities with less valuation-challenged generic peers."
Needham raises FY12 EPS estimate from $4.79 to $4.99, but lowers FY12 revs from $3.247 bln to $3.20 bln.
For an analyst ratings summary and ratings history on Perrigo Co. click here. For more ratings news on Perrigo Co. click here.
Shares of Perrigo Co. closed at $100.00 yesterday.
Analyst, Elliot Wilbur, said, "PRGO has put an end to a 3.5-year string of strong beat-and-raise Qs with disappointing 3QF12 results. The softness was largely the result of weak consumer healthcare sales, even accounting for impact of weak cough/cold season. The Nutritionals segment performance also fell short of expectations. Only source of strength continues to be the Generic Rx business with strong sales growth and margin performance. Bottom-line performance exceeded estimates but only due to one time benefits (tax and other income). FY2012 guidance was updated to reflect diminishing growth strength in key businesses. We remain at Hold on shares given that upside seems to be predicated on the continuing strong performance of the generic segment (represents ~27% of FY3Q121 sales) and we see more favorable reward/risk opportunities with less valuation-challenged generic peers."
Needham raises FY12 EPS estimate from $4.79 to $4.99, but lowers FY12 revs from $3.247 bln to $3.20 bln.
For an analyst ratings summary and ratings history on Perrigo Co. click here. For more ratings news on Perrigo Co. click here.
Shares of Perrigo Co. closed at $100.00 yesterday.
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