West Pharma Q4 2020 Earnings Report
Key Takeaways
West Pharmaceutical Services, Inc. reported a strong fourth quarter and full year 2020, with record full-year net sales, organic sales growth, and operating profit margin. The fourth quarter saw robust results, led by growth in Biologics and Generics market units, and an acceleration in COVID-19-associated sales of high-value product components.
Fourth-quarter net sales grew by 23.3% to $580.2 million; organic sales growth was 19.8%.
Reported-diluted EPS for the fourth quarter increased 53.6% to $1.29.
Adjusted-diluted EPS for the fourth quarter increased 63.4% to $1.34.
The company introduced full-year 2021 financial guidance with net sales expected between $2.500 billion and $2.525 billion, and reported-diluted EPS between $6.00 and $6.15.
West Pharma
West Pharma
West Pharma Revenue by Segment
Forward Guidance
Full-year 2021 net sales are expected to be in a range of $2.500 billion to $2.525 billion. Full-year 2021 reported-diluted EPS is expected to be in a range of $6.00 to $6.15. Full-year 2021 capital spending is expected to be in a range of $230 million to $240 million.
Positive Outlook
- Organic sales growth is expected to be in a range of 13% to 14%.
- Net sales guidance includes an estimated full-year 2021 benefit of $75 million based on current foreign exchange rates.
- Full-year reported-diluted EPS guidance range includes an estimated benefit of approximately $0.23 based on current foreign currency exchange rates.
- This reported-diluted EPS guidance range assumes a full-year 2021 tax rate of 23%, which does not include potential tax benefits from stock-based compensation.
- Full-year 2021 capital spending includes incremental capital spending to support capacity expansions at existing HVP facilities to produce components to be used with treatments and vaccines related to COVID-19.
Revenue & Expenses
Visualization of income flow from segment revenue to net income