West Announces Third-Quarter 2024 Results, Increases Fiscal Year 2024 Guidance and Declares Fourth-Quarter 2024 Dividend
West Pharmaceutical Services (NYSE: WST) reported third-quarter 2024 results with net sales of $746.9 million, showing a slight decline of 0.1%. The company's reported-diluted EPS was $1.85, down from $2.14 in the same period last year. Due to favorable currency movements, WST increased its full-year 2024 guidance, with net sales now expected between $2.875-2.905 billion and adjusted-diluted EPS range of $6.55-6.75. The Board approved a fourth-quarter dividend of $0.21 per share, marking the thirty-second consecutive annual increase. The Proprietary Products segment saw a 0.2% decline, while Contract-Manufactured Products grew by 0.4%.
West Pharmaceutical Services (NYSE: WST) ha riportato i risultati del terzo trimestre 2024, con vendite nette di 746,9 milioni di dollari, mostrando una leggera diminuzione dello 0,1%. L'utile per azione diluito riportato dall'azienda è stato di 1,85 dollari, in calo rispetto ai 2,14 dollari nello stesso periodo dell'anno scorso. Grazie ai movimenti favorevoli dei cambi, WST ha aumentato le previsioni per l'intero anno 2024, con vendite nette ora previste tra 2,875-2,905 miliardi di dollari e un intervallo di utile per azione diluito rettificato di 6,55-6,75 dollari. Il Consiglio ha approvato un dividendo per il quarto trimestre di 0,21 dollari per azione, segnando il trentaduesimo aumento annuale consecutivo. Il segmento Prodotti Proprietari ha visto una diminuzione dello 0,2%, mentre i Prodotti Fabbricati su Contratto sono cresciuti dello 0,4%.
West Pharmaceutical Services (NYSE: WST) reportó resultados del tercer trimestre de 2024 con ventas netas de 746,9 millones de dólares, lo que muestra una leve disminución del 0,1%. El EPS diluido reportado de la compañía fue de 1,85 dólares, por debajo de los 2,14 dólares en el mismo período del año pasado. Debido a movimientos favorables en las divisas, WST incrementó su guía para todo el año 2024, con ventas netas ahora esperadas entre 2,875-2,905 mil millones de dólares y un rango de EPS diluido ajustado de 6,55-6,75 dólares. La Junta aprobó un dividendo del cuarto trimestre de 0,21 dólares por acción, marcando el trigésimo segundo aumento anual consecutivo. El segmento de Productos Propietarios experimentó una disminución del 0,2%, mientras que los Productos Fabricados por Contrato crecieron un 0,4%.
West Pharmaceutical Services (NYSE: WST)는 2024년 3분기 결과를 보고했으며, 순매출은 7억 4690만 달러로 0.1%의 소폭 감소를 보였습니다. 회사의 보고된 희석 EPS는 1.85달러로, 지난해 같은 기간의 2.14달러에서 하락했습니다. 우호적인 환율 변동으로 인해 WST는 2024년 전체 연도 가이던스를 상향 조정했으며, 순매출은 이제 28억 7500만-29억 5000만 달러로 예상되며, 조정된 희석 EPS는 6.55-6.75달러 범위로 설정되었습니다. 이사회는 주당 0.21달러의 4분기 배당금을 승인하여 32년 연속 연간 증가를 기록했습니다. 독점 제품 부문은 0.2% 감소한 반면, 계약 제조 제품은 0.4% 성장했습니다.
West Pharmaceutical Services (NYSE: WST) a publié les résultats du troisième trimestre 2024 avec des ventes nettes de 746,9 millions de dollars, affichant une légère baisse de 0,1%. Le BPA dilué rapporté par la société était de 1,85 dollar, en baisse par rapport à 2,14 dollars au cours de la même période l'année dernière. En raison de mouvements de change favorables, WST a révisé à la hausse ses prévisions pour l'année complète 2024, avec des ventes nettes maintenant attendues entre 2,875-2,905 milliards de dollars et une fourchette de BPA dilué ajusté de 6,55-6,75 dollars. Le Conseil a approuvé un dividende du quatrième trimestre de 0,21 dollar par action, marquant ainsi la trente-deuxième augmentation annuelle consécutive. Le segment Produits Propriétaires a enregistré une baisse de 0,2%, tandis que les Produits Fabriqués sous Contrat ont augmenté de 0,4%.
West Pharmaceutical Services (NYSE: WST) hat die Ergebnisse für das dritte Quartal 2024 bekannt gegeben, mit Nettoumsätzen von 746,9 Millionen Dollar, was einem leichten Rückgang von 0,1% entspricht. Der berichtete verwässerte EPS des Unternehmens lag bei 1,85 Dollar, im Vergleich zu 2,14 Dollar im gleichen Zeitraum des Vorjahres. Aufgrund günstiger Währungsbewegungen hat WST die Prognose für das Gesamtjahr 2024 angehoben, wobei nun Nettoumsätze zwischen 2,875-2,905 Milliarden Dollar und ein bereinigter verwässerter EPS zwischen 6,55-6,75 Dollar erwartet werden. Der Vorstand genehmigte eine vierteljährliche Dividende von 0,21 Dollar pro Aktie, was die dreiunddreißigste jährliche Erhöhung in Folge darstellt. Der Bereich Proprietäre Produkte verzeichnete einen Rückgang von 0,2%, während die vertraglich produzierten Produkte um 0,4% wuchsen.
- Increased full-year 2024 guidance for both revenue and EPS
- 5% dividend increase to $0.21 per share
- Strong operating cash flow of $463.3 million
- High-value products represented over 75% of Proprietary Products segment
- Growth in self-injection devices for obesity and diabetes
- 0.1% decline in quarterly net sales
- 14.3% decrease in reported-diluted EPS from $2.14 to $1.85
- 32.7% decline in free cash flow
- Anticipated 1.5% to 2% decrease in organic net sales for 2024
- Decline in sales of FluroTec, Westar, and NovaPure products
Insights
West Pharmaceutical's Q3 results reveal a challenging quarter with flat sales at
However, the company's increased full-year guidance, driven by favorable currency movements, suggests some optimism. The new EPS guidance range of
The significant share repurchase activity, with
The market dynamics reveal important trends in West's key segments. The Generics unit's mid-single-digit decline in NovaBrand products suggests inventory adjustment pressures. In Biologics, while traditional components showed weakness, the growth in self-injection device platforms aligns with the expanding obesity and diabetes treatment markets.
The sustained performance in Contract-Manufacturing, particularly in self-injection devices, reflects the ongoing boom in GLP-1 medications. However, the projected
- Conference Call Scheduled for 9 a.m. EDT Today -
Third-Quarter 2024 Summary (comparisons to prior-year period)
- Net sales of
declined$746.9 million 0.1% ; organic net sales decline was0.5% . - Reported-diluted EPS of
, compared to$1.85 in the same period last year.$2.14 - Adjusted-diluted EPS of
, compared to$1.85 in the same period last year.$2.16 - As a result of favorable currency movements, the Company increased its full year 2024 net sales guidance range to
to$2.87 5 billion , up from its previous guidance range of$2.90 5 billion to$2.87 0 billion .$2.90 0 billion - The Company increased its full-year 2024 adjusted-diluted EPS guidance range to
to$6.55 , up from its previous guidance range of$6.75 to$6.35 .$6.65 - The Company also announced that its Board of Directors has approved a fourth-quarter 2024 dividend of
per share, a$0.21 5.0% increase over the per share paid in each of the four preceding quarters. This is the thirty-second consecutive annual increase in the Company's dividend. The dividend will be paid on November 20, 2024, to shareholders of record as of November 13, 2024.$0.20
Eric M. Green, President, Chief Executive Officer and Chair of the Board commented; "We are pleased to report solid third quarter results. Our West team across the globe continues to execute at a high-level, motivated by our purpose of improving patient lives. A key aspect of our strategy is West's team of scientific thought leaders and technical experts who continue to drive strong partnership and close collaboration with our customers. This reinforces my confidence in West's execution capabilities, as we continue to deliver our proven market-led strategy and attractive long-term potential."
Proprietary Products Segment
Net sales declined by
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. The Pharma market unit saw mid-single digit organic net sales growth, driven by an increase in sales of NovaBrand products and Administrative Systems.
Contract-Manufactured Products Segment
Net sales grew by
Financial Highlights (first nine months of 2024)
Operating cash flow was
During the first nine months of 2024, the Company repurchased 1,409,786 shares for
Full-Year 2024 Updated Financial Guidance
- As a result of favorable currency movements, the Company increased its full year 2024 net sales guidance range to
to$2.87 5 billion , compared to a prior range of$2.90 5 billion to$2.87 0 billion .$2.90 0 billion- Anticipating a decrease of approximately
1.5% to2% for organic net sales. - Net sales guidance includes an estimated full-year 2024 headwind of approximately
based on current foreign currency exchange rates, compared to previous guidance of a headwind of approximately$1.0 million .$5.0 million
- Anticipating a decrease of approximately
- Full-year 2024 adjusted-diluted EPS is expected to be in a range of
to$6.55 , compared to prior guidance range of$6.75 to$6.35 .$6.65 - Our updated adjusted-diluted EPS guidance incorporates a foreign currency exchange rate headwind of
, compared to prior guidance which anticipated a foreign currency exchange rate headwind of$0.02 .$0.03 - The updated guidance also includes EPS of
associated with first nine-months 2024 tax benefits from stock-based compensation.$0.26 - For the fourth-quarter 2024, our EPS guidance range assumes a tax rate of
22% and does not include potential additional tax benefits from stock-based compensation. Any tax benefits associated with stock-based compensation beyond those recorded in the first nine-months of 2024 would provide a positive adjustment to our full-year adjusted-diluted EPS guidance.
- Our updated adjusted-diluted EPS guidance incorporates a foreign currency exchange rate headwind of
- Full-year 2024 capital spending guidance is unchanged and is expected to be
.$375 million
Third-Quarter 2024 Conference Call
The live audio-only webcast will be made available via the Company's Investor Relations website here or by clicking here.
To participate in the conference call by asking questions to Management, please register in advance by clicking here. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that will be used to access the call.
Management will refer to a slide presentation during the call, which will be made available on the day of the call. To view the presentation, select "Presentations" in the "Investors" section of the Company's website.
A replay of the conference call and webcast will be available on the Company's website for 30 days.
Forward-Looking Statements
This release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may include such words as "raising," "positioned," "updating," "expected," "assumes," "unchanged," "includes," "would," "provide" and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this release. There is no certainty that actual results will be achieved in-line with current expectations. These forward-looking statements involve a number of risks and uncertainties. The following are some of the factors that could cause our actual results to differ materially from those expressed in or underlying our forward-looking statements: prevailing economic conditions and general uncertainties relating thereto that may be unknown and unforeseeable; customers' changing inventory requirements and manufacturing plans and customer decisions to move forward with our new products and product categories; disruptions or limitations in the Company's manufacturing capacity; average profitability, or mix, of the products we sell; dependence on third-party suppliers and partners; increased raw material, energy and labor costs; fluctuations in currency exchange; the ability to meet development milestones with key customers; and the consequences of other geopolitical events, including natural disasters, acts of war, and global health crises. This list of important factors is not all inclusive. For a description of certain additional factors that could cause the Company's future results to differ from those expressed in any such forward-looking statements, see Part I Item 1A, entitled "Risk Factors," in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and other filings with the United States Securities and Exchange Commission, including the Company's quarterly reports on Form 10-Q and current reports on Form 8-K.
Except as required by law or regulation, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Non-
This release contains certain non-GAAP financial measures, including organic net sales and adjusted-diluted EPS. For the purpose of aiding the comparison of our year-over-year results, we may refer to net sales and other financial results excluding the effects of changes in foreign currency exchange rates. Organic net sales exclude the impact from acquisitions and/or divestitures and translate the current-period reported sales of subsidiaries whose functional currency is other than the
WEST PHARMACEUTICAL SERVICES, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in millions, except per share data) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net sales | $ 746.9 | 100 % | $ 747.4 | 100 % | $ 2,144.4 | 100 % | $ 2,217.8 | 100 % | |||||||
Cost of goods and services sold | 482.2 | 65 | 459.1 | 61 | 1,419.5 | 66 | 1,366.8 | 62 | |||||||
Gross profit | 264.7 | 35 | 288.3 | 39 | 724.9 | 34 | 851.0 | 38 | |||||||
Research and development | 15.5 | 2 | 16.4 | 2 | 50.6 | 2 | 50.0 | 2 | |||||||
Selling, general and | 83.5 | 11 | 89.0 | 12 | 253.2 | 12 | 263.4 | 12 | |||||||
Other expense (income), net | 4.4 | 1 | 5.6 | 1 | 10.8 | 1 | 22.5 | 1 | |||||||
Operating profit | 161.3 | 21 | 177.3 | 24 | 410.3 | 19 | 515.1 | 23 | |||||||
Interest (income) expense, net | (3.9) | (1) | (5.9) | (1) | (11.0) | (1) | (10.8) | (1) | |||||||
Other nonoperating expense | 0.7 | — | (3.8) | — | 0.7 | — | (3.9) | — | |||||||
Income before income taxes | 164.5 | 22 | 187.0 | 25 | 420.6 | 20 | 529.8 | 24 | |||||||
Income tax expense | 32.4 | 4 | 29.4 | 4 | 70.7 | 3 | 87.8 | 4 | |||||||
Equity in net income of | (3.9) | — | (3.7) | (1) | (12.7) | — | (14.4) | (1) | |||||||
Net income | $ 136.0 | 18 % | $ 161.3 | 22 % | $ 362.6 | 17 % | $ 456.4 | 21 % | |||||||
Net income per share: | |||||||||||||||
Basic | $ 1.87 | $ 2.17 | $ 4.96 | $ 6.13 | |||||||||||
Diluted | $ 1.85 | $ 2.14 | $ 4.91 | $ 6.05 | |||||||||||
Average common shares | 72.8 | 74.3 | 73.1 | 74.4 | |||||||||||
Average shares assuming | 73.4 | 75.3 | 73.8 | 75.5 | |||||||||||
WEST PHARMACEUTICAL SERVICES REPORTING SEGMENT INFORMATION (UNAUDITED) (in millions) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
Net Sales: | 2024 | 2023 | 2024 | 2023 | |||
Proprietary Products | $ 601.4 | $ 602.5 | $ 1,720.6 | $ 1,803.6 | |||
Contract-Manufactured Products | 145.5 | 144.9 | 423.8 | 414.2 | |||
Consolidated Total | $ 746.9 | $ 747.4 | $ 2,144.4 | $ 2,217.8 | |||
Gross Profit: | |||||||
Proprietary Products | $ 235.7 | $ 261.4 | $ 649.8 | $ 780.6 | |||
Contract-Manufactured Products | 29.0 | 26.9 | 75.1 | 71.3 | |||
Unallocated | — | — | — | (0.9) | |||
Gross Profit | $ 264.7 | $ 288.3 | $ 724.9 | $ 851.0 | |||
Gross Profit Margin | 35.4 % | 38.6 % | 33.8 % | 38.4 % | |||
Operating Profit (Loss): | |||||||
Proprietary Products | $ 158.2 | $ 181.6 | $ 415.5 | $ 546.5 | |||
Contract-Manufactured Products | 21.8 | 21.0 | 56.1 | 53.3 | |||
Stock-based compensation expense | (5.1) | (5.9) | (14.4) | (21.9) | |||
General corporate costs | (13.6) | (19.4) | (46.9) | (62.8) | |||
Reported Operating Profit | $ 161.3 | $ 177.3 | $ 410.3 | $ 515.1 | |||
Reported Operating Profit Margin | 21.6 % | 23.7 % | 19.1 % | 23.2 % | |||
Unallocated items | (0.7) | 3.5 | (0.3) | 15.6 | |||
Adjusted Operating Profit | $ 160.6 | $ 180.8 | $ 410.0 | $ 530.7 | |||
Adjusted Operating Profit Margin | 21.5 % | 24.2 % | 19.1 % | 23.9 % |
WEST PHARMACEUTICAL SERVICES RECONCILIATION OF NON- Please refer to "Non- (in millions, except per share data) Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS
| |||||||
Three Months ended September 30, 2024 | Operating profit | Income tax expense | Net income | Diluted EPS | |||
Reported ( | |||||||
Unallocated Items: | |||||||
Restructuring and other charges (1) | (0.9) | (0.3) | (0.6) | (0.01) | |||
Amortization of acquisition-related intangible assets (2) | 0.2 | 0.1 | 0.7 | 0.01 | |||
Adjusted (Non- |
Nine Months ended September 30, 2024 | Operating profit | Income tax expense | Net income | Diluted EPS | |||
Reported ( | |||||||
Unallocated Items: | |||||||
Restructuring and other charges (1) | (0.9) | (0.3) | (0.6) | (0.01) | |||
Amortization of acquisition-related intangible assets (2) | 0.6 | 0.1 | 2.1 | 0.03 | |||
Adjusted (Non- |
Three Months ended September 30, 2023 | Operating profit | Income tax expense | Net income | Diluted EPS | |||
Reported ( | |||||||
Unallocated items: | |||||||
Amortization of acquisition-related intangible assets (2) | 0.2 | 0.1 | 0.7 | 0.01 | |||
Legal settlement (3) | — | (0.9) | (2.9) | (0.04) | |||
Cost investment impairment (4) | 3.3 | — | 3.3 | 0.05 | |||
Adjusted (Non- |
Nine Months ended September 30, 2023 | Operating profit | Income tax expense | Net income | Diluted EPS | |||
Reported ( | |||||||
Unallocated items: | |||||||
Restructuring and other charges (1) | 0.1 | (0.3) | 0.4 | — | |||
Amortization of acquisition-related intangible assets (2) | 0.6 | 0.1 | 2.1 | 0.03 | |||
Legal settlement (3) | — | (0.9) | (2.9) | (0.04) | |||
Cost investment impairment (4) | 3.3 | — | 3.3 | 0.05 | |||
Loss on disposal of plant (5) | 11.6 | (0.7) | 12.3 | 0.16 | |||
Adjusted (Non- |
(1) | Restructuring and other charges were a benefit of |
(2) | During the three and nine months ended September 30, 2024 and 2023, the Company recorded |
(3) | During the three and nine months ended September 30, 2023, the Company recorded a benefit of |
(4) | During the three and nine months ended September 30, 2023, the Company recorded expense of |
(5) | During the nine months ended September 30, 2023, the Company recorded expense of |
WEST PHARMACEUTICAL SERVICES RECONCILIATION OF NON- Please refer to "Non- (in millions, except per share data) Reconciliation of Net Sales to Organic Net Sales (6 and 7)
| |||||
Three Months ended September 30, 2024 | Proprietary | CM | Total | ||
Reported net sales ( | |||||
Effect of changes in currency translation rates | (2.2) | (0.7) | (2.9) | ||
Organic net sales (non- |
Nine Months ended September 30, 2024 | Proprietary | CM | Total | ||
Reported net sales ( | |||||
Effect of changes in currency translation rates | 0.4 | (0.6) | (0.2) | ||
Organic net sales (non- |
Nine Months ended September 30, 2023 | Proprietary | CM | Total | ||
Reported net sales ( | |||||
Effect of divestitures and/or acquisitions | (4.3) | — | (4.3) | ||
Net sales excluding divestiture (non- |
(6) | Organic net sales exclude the impact from acquisitions and/or divestitures and translate the current-period reported sales of subsidiaries whose functional currency is other than the |
(7) | Net sales excluding divestitures represents the 2023 comparative sales figure used in our organic sales growth calculation to eliminate the impact of our 2023 divestiture. As the 2023 divestiture took place in the second quarter of 2023, there was no impact of divestitures and/or acquisitions in the three months ended September 30, 2023. |
WEST PHARMACEUTICAL SERVICES RECONCILIATION OF NON- Please refer to "Non- (in millions, except per share data) Reconciliation of Reported-Diluted EPS Guidance to Adjusted-Diluted EPS Guidance | |||||
2023 Actual | 2024 Guidance | % Change | |||
Reported-diluted EPS ( | (17.3)% to ( | ||||
Loss on disposal of plant | 0.16 | — | |||
Cost investment activity | 0.06 | — | |||
Restructuring and other charges | (0.02) | (0.01) | |||
Amortization of acquisition-related intangible assets | 0.04 | 0.04 | |||
Legal settlement | (0.04) | — | |||
Adjusted-diluted EPS (Non- | ( |
Notes: | |
See "Full-year 2024 Financial Guidance" and "Non- | |
(8) | 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. Instead, we recognize the benefits as they occur. In the first nine months of 2024, tax benefits associated with stock-based compensation increased adjusted-diluted EPS by |
WEST PHARMACEUTICAL SERVICES CASH FLOW ITEMS (UNAUDITED) (in millions) | |||
Nine Months Ended September 30, | |||
2024 | 2023 | ||
Depreciation and amortization | |||
Operating cash flow | |||
Capital expenditures | |||
Free cash flow |
WEST PHARMACEUTICAL SERVICES FINANCIAL CONDITION (UNAUDITED) (in millions) | |||
As of September 30, 2024 | As of December 31, 2023 | ||
Cash and cash equivalents | |||
Accounts receivable, net | |||
Inventories | |||
Accounts payable | |||
Debt | |||
Equity | |||
Working capital |
Trademark Notices
Trademarks and registered trademarks are the property of West Pharmaceutical Services, Inc., in
Daikyo®, Daikyo Crystal Zenith® and Daikyo CZ® are registered trademarks of Daikyo Seiko, Ltd. Daikyo Crystal Zenith technologies are licensed from Daikyo Seiko, Ltd.
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SOURCE West Pharmaceutical Services, Inc.
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