Perrigo (PRGO) Falls to 52-Week Low on Weak Sales, Infant Formula Review

We recently published 10 Stocks Left Behind Amid Wall Street Cheer. Perrigo Company plc (NYSE:PRGO) is one of the worst-performing stocks on Wednesday.

Perrigo fell to a new 52-week low on Wednesday, extending to a three-day losing streak, as investor sentiment was dampened by weak net sales and news that it was conducting a strategic review of its infant formula business.

At intra-day trading, the stock dropped to its lowest level of $15.05 before gaining 5 cents back to end the day just down by 25.21 percent at $15.10 apiece.

In an updated report, Perrigo Company plc (NYSE:PRGO) said that net sales dipped by 4 percent to $1.043 billion from $1.087 billion in the same period last year, dragged by lower organic sales and the impact of its divestitures and exited products.

Despite the results, Perrigo Company plc (NYSE:PRGO) swung to a net income of $7.5 million, reversing a $21 million net loss in the same period last year.

In other news, Perrigo Company plc (NYSE:PRGO) said that it was conducting a strategic review of its infant formula business, which could open the door for a sale.

“This proactive review is about discipline and ensuring the company’s portfolio is best positioned for sustainable growth and free cash flow generation,” said Perrigo Company plc (NYSE:PRGO) President and CEO Patrick Lockwood-Taylor.

“While our infant formula operations have stabilized, the external environment has quickly changed, making a fit with our consumer health OTC businesses less strategic. Whatever path we choose, our corporate priorities are clear: reduce leverage, sustain our dividend policy, continue to deliver on customer partnerships and sharpen focus on our high-potential OTC portfolio to reach more consumers and drive household penetration,” he added.

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Disclosure: None. This article is originally published at Insider Monkey.