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Perrigo’s Q3 EPS beats amid mixed financial signals

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 11/23/2025, 11:17 am ET 11/23/2025, 11:17 am ET | 6 min 6 min read
Perrigo’s Q3 EPS beats amid mixed financial signals Thumbnail

Perrigo stocks have been trading up by 7.19 percent, driven by positive sentiment from promising FDA designations.

Consumer Staples industry expert:

Analyst sentiment – neutral

Perrigo (PRGO) currently exhibits mixed financial performance, reflecting its transitional market position within the consumer staples sector. The company’s profitability ratios, such as an EBIT margin of 1.5% and a concerning negative profit margin of -2.48%, highlight ongoing challenges in sustainable profitability. While the revenue of $4.37 billion persists, recent trends indicate a decreasing trajectory with a five-year revenue growth rate of -0.35%. The balance sheet shows a moderate leverage ratio of 2.3, indicating adequate capital structure management. Despite generating positive free cash flow of $29.8 million, the company’s strategic maneuvers need serious assessment to address long-term financial resilience.

Technically, Perrigo’s stock demonstrates a generally bearish trend with occasional recoveries. The recent price action indicates an upward correction following a low at $12.26 as observed on November 20, 2025. Analyzing weekly patterns, the stock closed at $13.14, aligning with a temporary resistance level. Volume analysis shows higher trading activity near key support around the $12.26 mark, suggesting investor interest at this price. For traders, a strategic entry could be considered on breakout above $13.75, the recent high, targeting resistance closer to $14.50, with stop-loss placements at $12.50 to limit downside risk.

Perrigo’s recent announcements, including a strategic review of its infant formula division, aim to unlock shareholder value and optimize portfolio impact. The company’s Q3 results showed EPS of $0.80, above expectations, despite revenue falling short of market consensus. Comparatively, Perrigo’s performance lags against sector benchmarks, reflecting challenges in the broader consumer products—healthcare space. Although maintaining its dividend at $0.29 per share signals management’s confidence, expected 2025 EPS ranges appear underwhelming. The technical support at $12.26 and resistance around $14.50 delineate current market sentiment, with potential price volatility foreseeable amid strategic business shifts. Overall, Perrigo’s prospects leaning towards a cautious outlook necessitate a vigilant approach amidst its strategic realignments.

  • The infant formula segment is under strategic review, considering options to boost cash flow, potentially revisiting a significant $240M investment amidst anticipated $360M sales in 2025.

  • Perrigo’s full-year EPS projection has been adjusted to $2.70 – $2.80, which is below the consensus estimate of $2.97.

  • Ongoing strategic evaluations aim to enhance profitability and market positioning, focusing on areas lagging in expected growth.

Candlestick Chart

Weekly Update Nov 17 – Nov 21, 2025: On Sunday, November 23, 2025 Perrigo Company plc stock [NYSE: PRGO] is trending up by 7.19%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Perrigo Company has reported an impressive adjusted EPS of $0.80 for its third quarter, outpacing the FactSet consensus of $0.76. However, while earnings per share exceeded expectations, the company’s revenue results painted a less optimistic picture, coming in at $1.04B, below the projected figure of $1.1B. Despite this, Perrigo has effectively managed growth in its market share, notably in five of the seven store brand categories, even in the face of subdued over-the-counter consumption patterns.

In an effort to boost cash flows and optimize portfolio outcomes, Perrigo is embarking on a strategic review of its infant formula business. This shift might involve re-evaluating its existing $240M investment in the sector, holding potential for generating $360M in net sales by 2025. These strategic assessments could be critical for Perrigo, as the company aims to navigate the challenges posed by their underwhelming current year earnings guidance, which falls short of expectations: an adjusted EPS forecast ranging between $2.70 and $2.80 against a consensus forecast of $2.97.

Considering the provided key ratios, Perrigo demonstrates strengths in aspects like a robust gross margin at 35.5% but faces profitability challenges with margins turning negative. Asset turnover and leverage ratios indicate room for operational efficiencies. Meanwhile, cash flow analysis reveals notable expenditures and liabilities while maintaining substantial liquidity, even amid a relatively healthy current ratio of 2.5.

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Conclusion: Strategic Outlook and Performance Insights

In a landscape filled with challenges and opportunities, Perrigo’s latest financial results shine a light on both its inherent strengths and areas ripe for strategic evolution. While the company has admirably surpassed earnings per share expectations, the figures also underscore the urgency with which it must address flagging revenues and project a full-year performance that appeases shareholders and market expectations alike.

The strategic review of its infant formula division reflects a broader commitment by Perrigo to recalibrate its portfolio with lucrative growth in mind. The potential to rejuvenate a segment poised for considerable sales underscores the proactive steps the company is taking toward long-term profitability—an approach that might well define its future success.

As millionaire penny stock trader and teacher Tim Sykes, says, “The goal is not to win every trade but to protect your capital and keep moving forward.” This mindset aligns with Perrigo’s cautious yet strategic approach as it navigates fiscal nuances. The company’s management remains poised to maximize shareholder value, albeit with a cautious eye on market fluctuations and consumer trends that demand agile, informed responses. As the company braces for the future, traders should watch closely for developments that could steer Perrigo towards reinforced market relevance and steady financial growth.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”