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Jun 30, 2021
West Pharma Q2 2021 Earnings Report
Announced second-quarter 2021 results, showing strong growth driven by organic sales and increased demand for products associated with COVID-19 vaccines.
Key Takeaways
West Pharmaceutical Services reported a strong second quarter with net sales of $723.6 million, a 37.3% increase, and diluted EPS of $2.47, a 104% increase. The company is raising its full-year 2021 net sales and adjusted-diluted EPS guidance.
Net sales grew by 37.3% to $723.6 million, with organic sales growth of 30.6%.
Reported diluted EPS increased by 104% to $2.47.
Adjusted diluted EPS increased by 97% to $2.46.
Full-year 2021 net sales guidance raised to $2.760 billion to $2.785 billion, and adjusted-diluted EPS guidance raised to $8.05 to $8.20.
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 2021 net sales are expected to be in a range of $2.760 billion to $2.785 billion. Full-year 2021 adjusted-diluted EPS is expected to be in a range of $8.05 to $8.20.
Positive Outlook
- Organic sales growth is expected to be in a range of 24% to 25%.
- Net sales guidance includes an estimated full-year 2021 benefit of $80 million based on current foreign exchange rates.
- Full-year adjusted-diluted EPS guidance range includes an estimated benefit of approximately $0.27 based on current foreign currency exchange rates.
- The revised guidance includes a $0.24 EPS positive impact from first-half 2021 tax benefits from stock-based compensation.
- Any tax benefits associated with stock-based compensation beyond those recorded in the first-half 2021 would provide a positive adjustment to our full-year EPS guidance.
Challenges Ahead
- Guidance assumes a tax rate of 23% for the remainder of the year.
- Guidance does not include potential tax benefits from stock-based compensation for the remainder of the year.
- Dependence on third-party suppliers and partners.
- Increased raw material costs.
- Fluctuations in currency exchange.
Revenue & Expenses
Visualization of income flow from segment revenue to net income