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Sep 30, 2024
West Pharma Q3 2024 Earnings Report
West Pharma's Q3 2024 results were announced, showcasing a slight decline in net sales and adjusted EPS, but the company increased its full-year guidance and declared a dividend.
Key Takeaways
West Pharmaceutical Services reported a slight decrease in net sales for Q3 2024, with a marginal decline in organic net sales. Despite this, the company increased its full-year net sales and adjusted EPS guidance, citing favorable currency movements. The Board of Directors also approved a fourth-quarter dividend increase.
Net sales declined slightly by 0.1% to $746.9 million, with a 0.5% decrease in organic net sales.
Reported and adjusted diluted EPS were $1.85, compared to $2.14 and $2.16 respectively in the same period last year.
Full-year net sales guidance increased to a range of $2.875 billion to $2.905 billion.
Full-year adjusted diluted EPS guidance increased to a range of $6.55 to $6.75.
West Pharma
West Pharma
West Pharma Revenue by Segment
Revenue by Segment
Proprietary Products Revenue
CapyFin.comContract-Manufactured Products Revenue
CapyFin.com Forward Guidance
West Pharma increased its full year 2024 net sales and adjusted-diluted EPS guidance.
Positive Outlook
- Full year 2024 net sales guidance range increased to $2.875 billion to $2.905 billion.
- Net sales guidance anticipates a decrease of approximately 1.5% to 2% for organic net sales.
- Full-year 2024 adjusted-diluted EPS is expected to be in a range of $6.55 to $6.75.
- Updated adjusted-diluted EPS guidance incorporates a foreign currency exchange rate headwind of $0.02.
- The updated guidance includes EPS of $0.26 associated with first nine-months 2024 tax benefits from stock-based compensation.
Challenges Ahead
- Net sales guidance includes an estimated full-year 2024 headwind of approximately $1.0 million based on current foreign currency exchange rates.
- EPS guidance range assumes a tax rate of 22% for Q4 2024.
- EPS guidance does not include potential additional tax benefits from stock-based compensation for Q4 2024.
- The Generics market unit had a mid-single digit organic net sales decline, driven by lower volumes of NovaBrand products.
- The Biologics market unit had a low-single digit organic net sales decline, driven by lower sales of FluroTec®, Westar® and NovaPure® products, offset by an increase in sales of self-injection device platforms.
Revenue & Expenses
Visualization of income flow from segment revenue to net income