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Mar 31, 2023
West Pharma Q1 2023 Earnings Report
Announced first-quarter 2023 results, which reflected a slight decrease in net sales but growth in organic sales, alongside updated full-year financial guidance and a declared third-quarter dividend.
Key Takeaways
West Pharmaceutical Services reported a slight decrease in net sales by 0.5% to $716.6 million, but organic sales grew by 2.3%. Reported-diluted EPS decreased by 19.2% to $1.85, and adjusted-diluted EPS declined by 13.9% to $1.98. The company updated its full-year 2023 financial guidance for net sales to a range of $2.965 billion to $2.990 billion and adjusted-diluted EPS to a range of $7.50 to $7.65.
Net sales declined by 0.5% to $716.6 million, while organic sales increased by 2.3%.
Reported-diluted EPS decreased by 19.2% to $1.85, and adjusted-diluted EPS decreased by 13.9% to $1.98.
The company updated full-year 2023 net sales guidance to a new range of $2.965 billion to $2.990 billion.
Full-year 2023 adjusted-diluted EPS guidance was updated to a new range of $7.50 to $7.65.
West Pharma
West Pharma
West Pharma Revenue by Segment
Revenue by Segment
Proprietary Products Revenue
CapyFin.comContract-Manufactured Products Revenue
CapyFin.com Forward Guidance
The Company is updating full-year 2023 net sales guidance to be a new range of $2.965 billion to $2.990 billion, compared to a prior range of $2.935 billion to $2.960 billion. Full-year 2023 adjusted-diluted EPS is expected to be in a range of $7.50 to $7.65, compared to prior guidance range of $7.25 to $7.40.
Positive Outlook
- Organic net sales growth guidance is unchanged and is expected to be approximately 3% to 4%.
- Net sales guidance assumes COVID-19 related sales of approximately $60 million.
- Net sales guidance includes an estimated full-year 2023 tailwind of $15 million based on current foreign currency exchange rates.
- The updated guidance also includes EPS of $0.15 associated with first-quarter 2023 tax benefits from stock-based compensation.
- Full-year 2023 capital spending guidance is unchanged and is expected to be $350 million.
Challenges Ahead
- Net sales guidance also includes a reduction of $8 million resulting from an expected divestiture of a European facility that produced standard Proprietary Product components.
- For the remaining quarters of the year, our EPS guidance range assumes a tax rate of 22% and does not include potential tax benefits from stock-based compensation.
- Reported-diluted EPS (U.S. GAAP) $7.73 to $7.34 to $7.49 ((5.0%) to (3.1%))
- Restructuring and related charges 0.29
- Pension settlement 0.42
Revenue & Expenses
Visualization of income flow from segment revenue to net income