Loading...
•
Mar 31, 2020
West Pharma Q1 2020 Earnings Report
West Pharmaceutical Services reported a strong performance in Q1 2020, driven by strong sales growth in high-value products.
Key Takeaways
West Pharmaceutical Services announced its financial results for the first-quarter 2020. Net sales of $491.5 million grew 10.8%; organic sales growth was 12.7%. Reported-diluted EPS of $0.99 increased 36%. Adjusted-diluted EPS of $1.01 increased 36%. The Company is maintaining full-year 2020 net sales guidance and is updating full-year 2020 adjusted-diluted EPS guidance to a new range of $3.52 to $3.62, compared to a prior range of $3.45 to $3.55.
Net sales increased by 10.8% to $491.5 million, with organic sales growth of 12.7%.
Reported-diluted EPS increased 36% to $0.99.
Adjusted-diluted EPS increased 36% to $1.01.
Full-year 2020 net sales guidance is maintained, while adjusted-diluted EPS guidance is updated to $3.52 to $3.62.
West Pharma
West Pharma
West Pharma Revenue by Segment
Revenue by Segment
Proprietary Products Revenue
CapyFin.comContract-Manufactured Products Revenue
CapyFin.com Forward Guidance
Full-year 2020 net sales guidance continues to be in a range of $1.95 billion to $1.97 billion. Full-year 2020 adjusted-diluted EPS is expected to be in a range of $3.52 to $3.62.
Positive Outlook
- Organic sales growth is expected to be approximately 8%.
- The revised guidance includes a $0.07 EPS impact from first-quarter tax benefits from stock-based compensation.
- Any tax benefits associated with stock-based compensation beyond those recorded in the first-quarter 2020 would provide a positive adjustment to our full-year EPS guidance.
- Net sales guidance continues to be in a range of $1.95 billion to $1.97 billion.
- Adjusted-diluted EPS is expected to be in a range of $3.52 to $3.62.
Challenges Ahead
- Net sales guidance includes an estimated full-year headwind of $26 million for the full-year 2020 based on current foreign exchange rates.
- Full-year adjusted-diluted EPS guidance includes an estimated headwind of approximately $0.07 based on current foreign currency exchange rates.
- For the remainder of the year, our EPS guidance range assumes a tax rate of 24% and does not include potential tax benefits from stock-based compensation.
- The duration and severity of the global COVID-19 pandemic, including prevailing economic conditions and general uncertainties relating thereto that may be unknown and unforeseeable
- Other potential impacts from COVID-19, including interruptions or weaknesses in our supply chain, illness in our workforce and access to transport for our products
Revenue & Expenses
Visualization of income flow from segment revenue to net income