Perrigo Earnings: Tumbled Start to 2024 as Volume Loss Worsens and Margins Shrink

No-moat Perrigo reported disappointing first-quarter results that came in below our expectations, Total sales of $1.1 billion were down 8.4% year over year with 4.3% loss from infant formula business and 3.6% loss from portfolio optimization and minor offset from base business growth. After updating our model and baking in slightly lowered outlook for the year with slight offset from time value of money impact, we lightly trim our fair value estimate to $36 per share from $37.