Benzinga | Feb 26, 2021 10:03AM EST

Earnings Preview for Perrigo Co

On Monday, March 01, Perrigo Co (NYSE:PRGO) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts expect Perrigo Co earnings of $1.0 per share. Revenue will likely be around $1.32 billion, according to the consensus estimate. In the same quarter last year, Perrigo Co reported earnings per share of $1.06 on revenue of $1.32 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street estimate would represent a 5.66% decline in the company's earnings. Sales would have fallen 0.23% from the same quarter last year. Perrigo Co's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.84 0.88 1.03 1.06EPS Actual 0.93 1.03 1.14 1.06Revenue Estimate 1.24 B 1.24 B 1.31 B 1.30 BRevenue Actual 1.21 B 1.22 B 1.34 B 1.32 B

Stock Performance

Shares of Perrigo Co were trading at $40.82 as of February 25. Over the last 52-week period, shares are down 27.44%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Perrigo Co is scheduled to hold the call at 08:00:00 ET and can be accessed here.