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Sep 30, 2020
West Pharma Q3 2020 Earnings Report
Reported robust third-quarter results driven by High-Value Products (HVP) and Biologics, with incremental sales related to the COVID-19 pandemic.
Key Takeaways
West Pharmaceutical Services reported strong third-quarter results with net sales growing by 20.1% and adjusted-diluted EPS increasing by 46%. The company raised its full-year 2020 net sales and adjusted-diluted EPS guidance.
Net sales increased by 20.1% to $548.0 million, with organic sales growth of 18.2%.
Reported-diluted EPS rose by 45% to $1.09.
Adjusted-diluted EPS increased by 46% to $1.15.
Full-year 2020 net sales guidance was raised to a range of $2.10 billion and $2.11 billion.
Revenue by Segment
Forward Guidance
Full-year 2020 net sales are expected to be in the range of $2.10 billion and $2.11 billion. Full-year 2020 adjusted-diluted EPS is expected to be in the range of $4.50 and $4.55.
Positive Outlook
- Organic sales growth is expected to be approximately 14% to 15%.
- Net sales guidance includes an estimated full-year headwind of $4 million based on current foreign exchange rates.
- Full-year adjusted-diluted EPS guidance includes an estimated headwind of approximately $0.02 based on current foreign currency exchange rates.
- The revised guidance includes an $0.18 EPS impact from tax benefits from stock-based compensation in the first nine months of 2020.
- Any tax benefits associated with stock-based compensation beyond those recorded in the first nine months of 2020 would provide a positive adjustment to our full-year EPS guidance.
Challenges Ahead
- Full-year net sales guidance includes an estimated full-year headwind of $4 million for the full-year 2020 based on current foreign exchange rates.
- Full-year adjusted-diluted EPS guidance includes an estimated headwind of approximately $0.02 based on current foreign currency exchange rates.
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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