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West Pharma
🇺🇸 NYSE:WST
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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.

Total Revenue
$747M
Previous year: $747M
-0.1%
EPS
$1.85
Previous year: $2.16
-14.4%
Organic Sales Growth
-0.5%
Previous year: 5.7%
-108.8%
Gross Profit
$265M
Previous year: $288M
-8.2%
Cash and Equivalents
$491
Previous year: $899M
-100.0%
Free Cash Flow
$98.8M
Previous year: $134M
-26.4%
Total Assets
$3.68B
Previous year: $1.85B
+98.7%

West Pharma

West Pharma

West Pharma Revenue by Segment

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

Company Overview

Full financial data and analysis

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