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Stock Alert: Perrigo Shares Up After Preliminary Results

Shares of self-care products manufacturer Perrigo Company plc (PRGO) jumped 12.6% on Tuesday, before closing at $56.91 after the company reported preliminary revenues, better than last year's revenue. The stock has been trading in a range of $40.68-$57.50 in the past one year.

In the fourth quarter, all business segments had stellar revenue growth, the company said. Preliminary net sales for the full-year stood at $4.8 billion, an increase of 2% from the reported revenue last year. This compares with the consensus estimate of $4.77 billion.

In November, when the company reported its third-quarter results, full-year adjusted EPS outlook was revised up to $3.85 - $4.05 from $3.75 - $4.05. Analysts see earnings of $3.99.

In the third quarter, net sales had increased 5.1% to $1.2 billion from the same quarter of last year. Adjusted net income was $142 million, or $1.04 per share versus $150 million, or $1.09 per share, for the same period last year.

To focus more on long-term growth, Perrigo had launched a transformation plan in May last year including 'Project Momentum,' which is a $100 million annual cost-saving program.

As per plans for transforming Perrigo to a consumer self-care company, that was announced in May last year, the company had a couple of acquisitions in recent months.

On January 6, the company has acquired Steripod, a leading toothbrush accessory brand. Perrigo had acquired Ranir Global Holdings LLC, a leading global store brand supplier of oral self-care products in July last year.

In a bid to increase its OTC (over-the-counter) presence, Perrigo acquired the OTC rights to Prevacid 24HR from GSK Consumer Healthcare last month.

Fourth-quarter earnings are scheduled to be reported on February 26.

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