Perrigo Co. (PRGO) surged the most in 18 months in New York as the largest U.S. maker of generic over- the-counter drugs reported quarterly sales that beat analyst forecasts for the first time in a year.
Perrigo, which bought B’nei Brak, Israel-based Agis Industries Ltd. in 2005, jumped 6.3 percent to $106.83 at 10:58 a.m., set for the biggest advance since August 2011. The U.S. shares traded at the highest premium on record to the company’s Tel Aviv stock after the shares slipped 0.1 percent to 367.8 shekels, or the equivalent of $99.68 on Jan. 31.
The company said revenue for the three months ended Dec. 31 rose 5.3 percent to $883 million, beating an $881.6 million mean estimate of 14 analysts surveyed by Bloomberg. Sales in the previous three quarters fell below projections by an average 5 percent, data compiled by Bloomberg show.
“The results will help ease concern around full-year numbers,” Randall Stanicky, an analyst at Canaccord Genuity Ltd. who has a hold rating on the shares said in an investor report. “This is more than enough and the stock should see a relief rally on results.”
Earnings per share for Perrigo’s fiscal second quarter were $1.36, exceeding analysts’ estimates of $1.31 per share. The Allegan, Michigan-based company forecast adjusted earnings per share for its fiscal 2013 in a range of $5.45 to $5.65, compared with analysts’ mean projection of $5.54 per share.
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