Infant formula maker Perrigo reports fiscal Q3 net earnings of US$115.7M, up 29.9% from year-ago period as new product launches boost sales; revenue up 12.5% to US$778M

Nevin Barich

ALLEGAN, Michigan , May 9, 2012 (Associated Press) – Perrigo Co., which makes store brand, over-the-counter drugs and infant formulas, said Tuesday that its fiscal third-quarter profit rose as new product launches boosted sales.

Revenue was below Wall Street expectations, and shares slid 3 percent in regular trading, along with broader market declines, before recovering those losses in after-hours trading.

CEO Joseph Papa said earnings were boosted by $64 million in new product launches, mostly in over-the-counter products. He said that keeps the company on track to exceed its new product sales goal of $190 million for fiscal 2012.

"With numerous exciting new product launches expected, we are looking forward to a strong end to the fiscal year," Papa said in a statement.

But the company cut its full-year revenue growth estimates because of a mild cold and flu season. Perrigo now expects full-year revenue to grow between 15 percent and 18 percent from last year. That's down from its previous range of 17 percent to 20 percent.

Even though revenue growth is slowing, the company boosted its full-year profit forecast to include a tax benefit of 20 cents per share from the recent quarter.

Perrigo now expects adjusted earnings for the year of $4.90 to $5 per share. That's up from the previous guidance of $4.70 to $4.80 per share. Analysts forecast $4.78 per share, according to FactSet.

Perrigo's net income during the quarter ended March 31 was $115.7 million, or $1.23 per share, compared to $89.1 million, or 95 cents per share, in the prior-year period. Adjusted income from continuing operations was $1.41 per share. Revenue rose to $778 million from $691.6 million.

The results beat the $1.20 per share that analysts expected, but missed their revenue forecast of $822 million, according to FactSet.

Shares rose $3.78, or 3.8 percent, to $103.78 in after-hours trading, after declining $3.78 to close at $100 during regular trading.

The stock has traded between $75.89 and $108.60 over the last 52 weeks.

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