Perrigo fiscal 4Q profit climbs but shares tumble

ALLEGAN, Mich. (AP) -- Perrigo Co., which makes store brand over-the-counter drugs and infant formulas, saw its fiscal fourth-quarter earnings climb 25 percent, as new products and sales from acquisitions helped revenue. However, that revenue total missed Wall Street expectations again, and the company's stock tumbled in last Thursday trading. The Allegan, Mich., company earned $107 million, or $1.14 per share, in the three months that ended June 30. That compares with $85.6 million, or 91 cents per share, in last year's quarter. Adjusted earnings this year totaled $1.28 per share. Revenue rose 18 percent to $831.8 million. Perrigo's earnings topped analyst expectations of $1.27 per share, according to FactSet. But revenue fell short of the average expectation of $852.7 million. Perrigo's revenue also missed expectations in its fiscal third quarter. Company shares dropped 6.4 percent, or $7.46, to $109.14 in last Thursday morning trading. Perrigo said higher sales of existing products, new product sales, and sales from its CanAm Care acquisition helped add revenue in its Consumer Healthcare segment. New product sales, mainly from infant formula, helped revenue from its Nutritionals segment climb. Perrigo tied this to retail shipments made ahead of a planned July 1 shutdown of a Vermont plant to install a new packaging line. Revenue from Perrigo's Rx Pharmaceuticals segment climbed 70 percent to $157 million, due mainly to its Paddock Labs acquisition. A 16 percent increase in the cost of sales, to $537.9 million, and an 11 percent increase in selling and administration expenses to $94.6 million balanced those gains. For the full fiscal year, Perrigo earned $401.6 million, or $4.27 per share, on $3.17 billion in revenue. For fiscal 2013, Perrigo forecasts adjusted earnings of between $5.30 and $5.50 per share. Analysts expect, on average, earnings of $5.43 per share. Published: Mon, Aug 20, 2012