West Pharma Q3 2023 Earnings Report
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.
West Pharma
West Pharma
West Pharma 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%.
- Net sales guidance assumes COVID-19 related sales of approximately $68 million, compared to prior guidance of $60 million.
- Net sales guidance includes an estimated full-year 2023 tailwind of $20 million based on current foreign currency exchange rates, unchanged from prior guidance.
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income