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Mar 31, 2024

West Pharma Q1 2024 Earnings Report

West Pharma's first quarter results were announced, showing a slight decrease in net sales and a decline in reported EPS, while reaffirming full-year net sales guidance and raising full-year adjusted EPS guidance.

Key Takeaways

West Pharmaceutical Services reported a 3.0% decrease in net sales to $695.4 million and a 16.2% decline in reported diluted EPS to $1.55 for the first quarter of 2024. The company reaffirmed its full-year net sales guidance of $3.000 billion to $3.025 billion and raised its full-year adjusted diluted EPS guidance to a new range of $7.63 to $7.88.

Net sales decreased by 3.0% to $695.4 million, with a similar decline in organic net sales.

Reported diluted EPS decreased by 16.2% to $1.55, while adjusted diluted EPS decreased by 21.2% to $1.56.

Full-year net sales guidance reaffirmed in the range of $3.000 billion to $3.025 billion.

Full-year adjusted diluted EPS guidance raised to a new range of $7.63 to $7.88.

Total Revenue
$695M
Previous year: $717M
-3.0%
EPS
$1.56
Previous year: $1.98
-21.2%
Organic Sales Growth
-3%
Previous year: 2.3%
-230.4%
Gross Profit
$230M
Previous year: $271M
-15.1%
Cash and Equivalents
$602M
Previous year: $886M
-32.1%
Free Cash Flow
$27.6M
Previous year: $56M
-50.7%
Total Assets
$3.6B
Previous year: $3.72B
-3.3%

West Pharma

West Pharma

West Pharma Revenue by Segment

Forward Guidance

The Company is reaffirming full-year 2024 financial guidance of net sales in a range of $3.000 billion to $3.025 billion and raising full-year 2024 financial guidance of adjusted-diluted EPS to a new range of $7.63 to $7.88.

Positive Outlook

  • Full-year 2024 net sales guidance reaffirmed in a range of $3.000 billion to $3.025 billion.
  • Organic net sales growth is expected to be approximately 2% to 3%.
  • Full-year 2024 adjusted-diluted EPS guidance raised to a new range of $7.63 to $7.88.
  • Updated guidance includes EPS of $0.15 associated with first-quarter 2024 tax benefits from stock-based compensation.
  • Full-year 2024 capital spending guidance is unchanged and is expected to be $350 million.

Challenges Ahead

  • Net sales guidance includes an estimated full-year 2024 headwind of approximately $8.0 million based on current foreign currency exchange rates.
  • Full-year adjusted-diluted EPS guidance range includes an estimated headwind of approximately $0.04 based on current foreign currency exchange rates, which is an increase from prior guidance of $0.02.
  • For the remaining quarters of the year, our EPS guidance range assumes a tax rate of 22.5% and does not include potential tax benefits from stock-based compensation.
  • Net sales of $695.4 million declined 3.0%; organic net sales also declined by 3.0%.
  • Reported-diluted EPS of $1.55 declined by 16.2%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income