Perrigo Company plc PRGO shares surged on Friday after the company issued financial targets for 2025 and 2025 to 2027 on its investor day.

For 2025, the company expects:

• Sales growth of 1% to 3% vs. consensus of $4.79 billion
• Organic net sales growth of 2.5% to 4.5%
• Adjusted EPS of $2.90 – $3.10 compared to the street view of $3.36
• Adjusted operating margin of around 15%

For 2025-2027, Perrigo projects:

• Organic net sales CAGR of 2.5% – 4.5%
• Adjusted EPS CAGR of high-single to low-double-digit %
• Adjusted operating margin expansion of +150 to +250 basis points by 2027

Apart from this, the company disclosed that its strategy to enhance cash flow and total shareholder return is centered around its ‘Three-S’ plan:

• ‘Stabilizing’ the Consumer Self-Care Americas (CSCA) store brand and infant formula sectors
• ‘Streamlining’ the global portfolio, operational model, and Consumer Self-Care International (CSCI) business
• ‘Strengthening’ successful areas by focusing on and boosting investments in key ‘High-Grow’ brands

On Thursday, the company reported fourth-quarter adjusted EPS of $0.93, slightly missing the $0.94 estimate, while sales of $1.14 billion fell short of the $1.20 billion estimate.

President and CEO, Patrick Lockwood-Taylor said, “Though 2024 was a challenging year as we had to quickly overcome evolving regulatory dynamics within our infant formula business, we made substantial progress to rewire Perrigo through stabilizing our CSCA businesses, streamlining our operations and strengthening the Company for the long-term.”

Investors can gain exposure to the stock via SPDR S&P Pharmaceuticals ETF XPH and Bahl & Gaynor Small/Mid Cap Income Growth ETF SMIG.

Price Action: PRGO shares are up 21.3% at $29.26 at the last check Friday.

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