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Dec 31, 2022
West Pharma Q4 2022 Earnings Report
West Pharmaceutical Services' financial performance declined in Q4 2022, with net sales and EPS decreasing compared to the prior-year period. The company introduced full-year 2023 financial guidance and approved a share repurchase program.
Key Takeaways
West Pharmaceutical Services reported a decrease in net sales and EPS for Q4 2022 compared to the prior-year period. Net sales decreased by 3.0% to $708.7 million, and reported-diluted EPS decreased by 29.5% to $1.36. The company is introducing full-year 2023 financial guidance of net sales in a range of $2.935 billion to $2.960 billion and adjusted-diluted EPS in a range of $7.25 to $7.40.
Fourth-quarter net sales decreased by 3.0% to $708.7 million, with organic net sales growth of 2.6%.
Reported-diluted EPS for the fourth quarter decreased by 29.5% to $1.36, while adjusted-diluted EPS decreased by 13.2% to $1.77.
The company introduced full-year 2023 financial guidance, projecting net sales between $2.935 billion and $2.960 billion and adjusted-diluted EPS between $7.25 and $7.40.
A share repurchase program was approved, allowing the company to repurchase up to $1.0 billion in shares of common stock.
West Pharma
West Pharma
West Pharma Revenue by Segment
Revenue by Segment
Proprietary Products Revenue
CapyFin.comContract-Manufactured Products Revenue
CapyFin.com Forward Guidance
Full-year 2023 net sales are expected to be in a range of $2.935 billion to $2.960 billion. Full-year 2023 adjusted-diluted EPS is expected to be in a range of $7.25 to $7.40. Full-year 2023 capital spending is expected to be $350 million.
Positive Outlook
- Net sales are expected to be in a range of $2.935 billion to $2.960 billion.
- Organic net sales growth is expected to be approximately 3% to 4%.
- Adjusted-diluted EPS is expected to be in a range of $7.25 to $7.40.
- Capital spending is expected to be $350 million.
- Incremental capital spending to support capacity expansions at existing HVP facilities.
Challenges Ahead
- Net sales guidance assumes COVID-19 related sales of approximately $85 million, compared to $388 million in 2022.
- Net sales guidance includes an estimated full-year 2023 headwind of $30 million based on current foreign currency exchange rates.
- Adjusted-diluted EPS guidance range includes an estimated headwind of approximately $0.11 based on current foreign currency exchange rates.
- Adjusted-diluted EPS guidance range assumes a full-year 2023 tax rate of approximately 23%, which does not include potential tax benefits from stock-based compensation.
- Potential tax benefits from stock-based compensation are not included, as they are out of the Company's control.
Revenue & Expenses
Visualization of income flow from segment revenue to net income