Loading...
•
Jun 30, 2022
West Pharma Q2 2022 Earnings Report
West Pharmaceutical Services reported excellent second-quarter results, driven by strong demand for high-value products and strategic execution.
Key Takeaways
West Pharmaceutical Services announced its financial results for the second quarter of 2022, reporting net sales of $771.3 million, a 6.6% increase compared to the prior-year period. Organic net sales growth was 13.1%. The company updated its full-year 2022 net sales guidance to a range of $2.950 billion to $2.975 billion and adjusted-diluted EPS guidance to a new range of $9.00 to $9.15.
Net sales grew by 6.6% to $771.3 million, with organic net sales growth of 13.1%.
Reported-diluted EPS was $2.48, compared to $2.47 in the same period last year.
Adjusted-diluted EPS was $2.47, compared to $2.46 in the same period last year.
Full-year 2022 net sales guidance was updated to a range of $2.950 billion to $2.975 billion.
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 2022 net sales are expected to be in the range of $2.950 billion to $2.975 billion. Full-year 2022 adjusted-diluted EPS is expected to be in the range of $9.00 to $9.15.
Positive Outlook
- Organic sales growth is expected to be approximately 11%.
- Higher base business sales are expected to partially offset the decline in COVID-19 related sales.
- The revised guidance includes a $0.13 EPS positive impact from first-half 2022 tax benefits from stock-based compensation.
- Full-year 2022 capital spending is expected to be $380 million, unchanged from prior guidance.
- Includes incremental capital spending to support capacity expansions at existing HVP facilities.
Challenges Ahead
- Net sales guidance includes an estimated full-year 2022 headwind of $190 million due to foreign currency exchange rates.
- The full-year adjusted-diluted EPS guidance range includes an estimated headwind of $0.55 due to foreign currency exchange rates.
- The company expects a full-year decline in COVID-19 related sales of approximately 20%, or $85 million less than 2021 sales.
- EPS guidance range assumes a tax rate of 23% and does not include potential tax benefits from stock-based compensation for second-half 2022.
- Decline in expected COVID-19 related net sales.
Revenue & Expenses
Visualization of income flow from segment revenue to net income