Fiscal 4Q profits for Perrigo catapult nearly 75 percent
On Tuesday, the Allegan, Mich., based Perrigo Co. announced that its profits for the fiscal fourth quarter hiked 75% thanks to increases in sales of nutritional and consumer healthcare products.
In the three months that ended June 25, the manufacturer of over-the-counter drugs and infant formulas produced $85.6 million, or 91 cents per share that was comparable to revenues of $49 million, or 53 cents per share, in the same quarter last year. The 2011 adjusted earnings for this quarter were $1.02 per share. Incomes hiked 14 percent to $704.6 million.
FactSet surveyed analysts anticipated average incomes of 97 cents per share on $703.4 million in revenue.
According to Perrigo, product sales and higher demands for existing products catapulted the consumer healthcare segment 9% to $434 million. Taking into account full quarter sales from the purchase of PBM Holdings Inc., an infant formula maker, the nutritional segment sales jumped 47% to $123 million.
Including full year losses caused by ceased operations, Perrigo earned $339.2 million, or $3.63 per share, on $2.76 billion in revenue.
On an average, analysts anticipate revenues of $4.64 per share, and the company looks forward to adjusted earnings of $4.50 to $4.65 per share for 2012.
During the fiscal second quarter, Perrigo is said to issue $350 million in notes and use it in part to clear its debt.
While Perrigo will issue $100 million in 15-year notes at a 4.67 percent interest rate and $75 million in 10-year notes at a 4.27 percent interest rate by September 30, the company is expected to issue $175 million in 12-year notes at a 4.52 percent interest rate in December.
In morning trading, shares of Perrigo dropped $1.24 to $87.14.