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Dec 31, 2023
West Pharma Q4 2023 Earnings Report
West Pharma reported a net sales increase of 3.3% and an adjusted-diluted EPS increase of 3.4% for Q4 2023.
Key Takeaways
West Pharmaceutical Services, Inc. announced its Q4 and full-year 2023 financial results, with Q4 net sales reaching $732.0 million, a 3.3% increase, and adjusted-diluted EPS of $1.83, a 3.4% increase. The company introduced full-year 2024 financial guidance, expecting net sales between $3.000 billion and $3.025 billion and adjusted-diluted EPS between $7.50 and $7.75.
Fourth-quarter net sales increased by 3.3% to $732.0 million; organic net sales grew by 1.4%.
Reported-diluted EPS for the fourth quarter increased by 34.6% to $1.83.
Adjusted-diluted EPS for the fourth quarter increased by 3.4% to $1.83.
Full-year 2024 financial guidance projects net sales in the range of $3.000 billion to $3.025 billion and adjusted-diluted EPS in the range of $7.50 to $7.75.
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 anticipates net sales between $3.000 billion and $3.025 billion and adjusted-diluted EPS between $7.50 and $7.75 for full-year 2024.
Positive Outlook
- Organic net sales growth is expected to be approximately 2% to 3%.
- Net sales guidance includes an estimated full-year 2024 headwind of $8 million based on current foreign currency exchange rates.
- Full-year adjusted-diluted EPS guidance range includes an estimated headwind of approximately $0.02 based on current foreign currency exchange rates.
- Assumes a full-year 2024 tax rate of approximately 22.5%, which does not include potential tax benefits from stock-based compensation.
- Full-year 2024 capital spending is expected to be $350 million, including incremental capital spending to support capacity expansions at existing HVP and Contract Manufacturing facilities.
Challenges Ahead
- Expects moderated organic sales growth as they manage timing of inventory management, especially with our largest customers.
- Expects headwinds to be more pronounced during the first quarter and less impactful in subsequent quarters.
- Net sales guidance includes an estimated full-year 2024 headwind of $8 million based on current foreign currency exchange rates.
- Full-year adjusted-diluted EPS guidance range includes an estimated headwind of approximately $0.02 based on current foreign currency exchange rates.
- We have opted not to forecast 2024 tax benefits from stock-based compensation in upcoming quarters, as they are out of the Company’s control.
Revenue & Expenses
Visualization of income flow from segment revenue to net income