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Jun 30, 2023
West Pharma Q2 2023 Earnings Report
Reported a decrease in net sales and EPS, but raised full-year guidance due to momentum in high-value product capacity expansion projects.
Key Takeaways
West Pharmaceutical Services reported a decrease in net sales by 2.3% and a decline in reported-diluted EPS from $2.48 to $2.06 compared to the same period last year. However, the company is raising its full-year net sales and adjusted-diluted EPS guidance, reflecting confidence in its high-value product capacity expansion projects.
Net sales decreased by 2.3% to $753.8 million, with organic net sales declining by 2.5%.
Reported-diluted EPS decreased to $2.06, compared to $2.48 in the prior-year period.
Adjusted-diluted EPS decreased to $2.11, compared to $2.47 in the prior-year period.
Full-year net sales guidance raised to $2.970 billion - $2.995 billion and adjusted-diluted EPS guidance raised to $7.65 - $7.80.
Revenue by Segment
Forward Guidance
The Company is raising full-year 2023 net sales guidance to a new range of $2.970 billion to $2.995 billion, compared to a prior range of $2.965 billion to $2.990 billion. Full-year 2023 adjusted-diluted EPS is expected to be in a range of $7.65 to $7.80, compared to prior guidance range of $7.50 to $7.65.
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, unchanged from prior guidance.
- Net sales guidance includes an estimated full-year 2023 tailwind of $20 million based on current foreign currency exchange rates, compared to prior guidance of $15 million.
- Net sales guidance also includes a reduction of $8 million resulting from a divestiture of a European facility that produced standard Proprietary Product components, unchanged from prior guidance.
- Full-year adjusted-diluted EPS guidance range includes an estimated tailwind of approximately $0.05 based on current foreign currency exchange rates, compared to prior guidance of $0.02.
Challenges Ahead
- Full-year adjusted-diluted EPS guidance range assumes a tax rate of 22% and does not include potential tax benefits from stock-based compensation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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