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Sep 30, 2023
West Pharma Q3 2023 Earnings Report
West Pharma's Q3 2023 performance reflected solid organic net sales growth, driven by Proprietary Products and Contract Manufacturing, but was tempered by a slowdown in restocking trends.
Key Takeaways
West Pharmaceutical Services reported net sales of $747.4 million, an 8.8% increase, with organic net sales growth of 5.7%. Reported diluted EPS increased by 34.6% to $2.14, while adjusted diluted EPS rose by 6.4% to $2.16. The company updated its full-year net sales guidance to $2.950 billion to $2.960 billion and adjusted diluted EPS guidance to $7.95 to $8.00.
Net sales increased by 8.8% to $747.4 million; organic net sales grew by 5.7%.
Reported diluted EPS increased 34.6% to $2.14.
Adjusted diluted EPS increased 6.4% to $2.16.
Full-year net sales guidance updated to $2.950B - $2.960B; adjusted diluted EPS guidance updated to $7.95 - $8.00.
Revenue by Segment
Forward Guidance
The Company is updating full-year 2023 net sales guidance to be a new range of $2.950 billion to $2.960 billion, compared to a prior range of $2.970 billion to $2.995 billion. Full-year 2023 adjusted-diluted EPS is expected to be in a range of $7.95 to $8.00, compared to prior guidance range of $7.65 to $7.80.
Positive Outlook
- Full-year adjusted-diluted EPS guidance range includes a tailwind of approximately $0.07 based on current foreign currency exchange rates, compared to prior guidance of a tailwind of $0.05.
- The updated guidance also includes EPS of $0.41 associated with first nine-months 2023 tax benefits from stock-based compensation.
- Full-year 2023 capital spending guidance is unchanged and is expected to be $350 million.
- This includes incremental capital spending to support capacity expansions at existing HVP facilities.
Challenges Ahead
- The Company is updating full-year 2023 net sales guidance to be a new range of $2.950 billion to $2.960 billion, compared to a prior range of $2.970 billion to $2.995 billion.
- Organic net sales growth guidance is a range of 2% to 3%, compared to prior guidance of a range of 3% to 4%.
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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