Perrigo Co PLC (PRGO) shares plunged 16.40% at the market open on Wednesday following the release of its second-quarter earnings report, which fell significantly short of analyst expectations. The pharmaceutical company's disappointing performance has raised concerns about its growth trajectory and financial outlook.

For the second quarter, Perrigo reported adjusted earnings per share of $0.57, missing the analyst consensus estimate of $0.59 by 3.88%. While this represents a 7.55% increase from $0.53 per share in the same period last year, the earnings miss has clearly disappointed investors. Furthermore, the company's quarterly sales came in at $1.056 billion, falling short of the expected $1.082 billion by 2.37% and marking a 0.94% decrease from the $1.066 billion reported in the previous year.

Despite the disappointing results, Perrigo maintained its fiscal year 2025 outlook, projecting adjusted earnings per share between $2.90 and $3.10. The company also forecasts full-year reported net sales growth of 0% to 3% and organic growth of 1.5% to 4.5%. However, these projections seem to have done little to assuage investor concerns, as evidenced by the significant stock decline. The market's reaction suggests that investors may be questioning Perrigo's ability to meet its financial targets in the face of current challenges, leading to the sharp sell-off in early trading.