Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, August 17, 2018

Article Excerpt

PERRIGO COMPANY PLC, $72.96, symbol PRGO on New York, is a Dublin-based drug company that sells both generic topical pharmaceutical products as well as over-the-counter store-branded consumer products for coughs, colds, allergies, etc. The over-the-counter products are made for retailers like Walmart, Walgreen, Kroger and, most recently, Amazon.com. They offer cheaper substitutes for name-brand products such as Pepcid AC, Sudafed PE, Nyquil and Claritin. On August 9, 2018, the company announced second quarter earnings that failed to reach consensus estimates. As a result, the shares are down 11% since then. In the three months ended June 30, 2018, Perrigo’s revenue declined by 4.2%, to $1.19 billion from $1.24 billion a year earlier. Revenue was lower as a result of weaker sales for its generic drug business. The company’s earnings in the latest quarter, excluding one-time items, were $169.0 million. That’s down 3.4% from $175.0 million a year earlier. Earnings per share were unchanged at $1.22 due to more shares outstanding. At the same time…