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Jun 30, 2024
West Pharma Q2 2024 Earnings Report
West Pharmaceutical Services reported a decline in net sales and EPS due to customer destocking, but anticipates stronger revenues in the second half of the year and a return to organic growth in Q4.
Key Takeaways
West Pharmaceutical Services reported a 6.9% decrease in net sales to $702.1 million and a decline in diluted EPS to $1.51 for Q2 2024. The company is updating its full-year net sales guidance to $2.870 billion to $2.900 billion and adjusted-diluted EPS guidance to $6.35 to $6.65 due to the impact of customer destocking.
Net sales decreased by 6.9% to $702.1 million; organic net sales decreased by 5.9%.
Reported-diluted EPS was $1.51, compared to $2.06 in the same period last year.
Adjusted-diluted EPS was $1.52, compared to $2.11 in the same period last year.
Full-year net sales guidance updated to $2.870 billion - $2.900 billion; adjusted-diluted EPS guidance updated to $6.35 - $6.65.
Revenue by Segment
Forward Guidance
The Company is updating full-year 2024 net sales guidance to a range of $2.870 billion to $2.900 billion, compared to a prior range of $3.000 billion to $3.025 billion. Full-year 2024 adjusted-diluted EPS is expected to be in a range of $6.35 to $6.65, compared to prior guidance range of $7.63 to $7.88.
Positive Outlook
- Net sales guidance includes an estimated full-year 2024 headwind of approximately $5.0 million based on current foreign currency exchange rates, compared to prior guidance of approximately $8.0 million.
- Full-year adjusted-diluted EPS guidance range includes an estimated headwind of approximately $0.03 based on current foreign currency exchange rates, compared to prior guidance of $0.04.
- The updated guidance also includes EPS of $0.22 associated with first-half 2024 tax benefits from stock-based compensation.
- For the second half of the year, our EPS guidance range assumes a tax rate of 22% and does not include potential tax benefits from stock-based compensation.
- Full-year 2024 capital spending is expected to be $375 million, an increase from the previous estimate of $350 million.
Challenges Ahead
- Organic net sales are now expected decrease approximately 1% to 2%.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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