- Adjusted Earnings Per Share (EPS) Forecast: West Pharma raised its full-year 2024 adjusted EPS forecast to a range of $6.55 to $6.75, up from earlier forecasts of $6.35 to $6.65.
- Third Quarter Performance:
- Adjusted EPS for the third quarter was $1.85, which is below last year’s $2.16 but surpassed the estimate of $1.50.
- Net sales for the third quarter came in at $746.9 million, slightly lower than the previous year’s $747.4 million but exceeded expectations of $709.7 million.
- Proprietary Products net sales were marginally down by 0.2% year over year, totaling $601.4 million, yet they exceeded the estimate of $561.9 million.
- Contract Manufacturing net sales increased by 0.4% year over year to $145.5 million, narrowly missing the estimate of $146.7 million.
- Adjusted operating income fell by 11% year over year to $160.6 million, still beating the estimated $132.6 million.
- Full-Year 2024 Guidance Adjustments:
- West Pharma increased its full-year 2024 net sales guidance to a range of $2.875 billion to $2.905 billion due to favorable currency movements, up from the previous guidance of $2.870 billion to $2.900 billion.
- The full-year 2024 net sales guidance takes into account an estimated currency exchange headwind of $1.0 million, improved from the earlier expectation of a $5.0 million headwind.
- Market Sentiment: The company currently has 8 buy ratings, 4 hold ratings, and 0 sell ratings from analysts.
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West Pharmaceutical Services Inc on Smartkarma
Analysts on Smartkarma are closely monitoring West Pharmaceutical Services Inc, with insights from Baptista Research shedding light on the company’s performance amid challenges. In a report titled “West Pharmaceutical Services Inc.: How Are They Dealing With The Intensifying Competition In Biologics? – Major Drivers,” West Pharmaceuticals faced difficulties in the second quarter of 2024, marked by lower-than-expected results due to ongoing customer destocking. Despite this, the company remains optimistic about a recovery, focusing on their Proprietary Products segment, especially in biologics. With enhanced capabilities and manufacturing expansions to meet the rising demand in biologics, high-value products (HVP), and regulatory-facing solutions, West Pharmaceuticals is positioning itself for growth.
In another report, “West Pharmaceutical Services: Contract Manufacturing Expansion & Other Major Drivers,” Baptista Research highlights the company’s strong performance at the beginning of 2024 despite market challenges. While facing a slight decline in organic sales and profits compared to the previous year due to factors like inventory adjustments and customer destocking, West Pharmaceutical Services continues to be a global leader in innovative solutions for injectable drug administration. Baptista Research aims to assess key drivers influencing the company’s stock price and is conducting an independent valuation using a Discounted Cash Flow (DCF) methodology to provide a comprehensive analysis of West Pharmaceutical Services’ future prospects.
A look at West Pharmaceutical Services Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
West Pharmaceutical Services Inc, a company specializing in bringing new drug therapies and healthcare products to global markets, appears to have a promising long-term outlook. The company has received favorable scores in key areas from Smartkarma Smart Scores. With above-average scores in Resilience and Growth, and average scores in Value, Dividend, and Momentum, West Pharmaceutical Services Inc is positioned relatively well for the future.
West Pharmaceutical Services Inc focuses on design and manufacture of packaging components, research and development of drug delivery systems, and contract laboratory services. The company’s strong emphasis on resilience and growth, coupled with its value-added services, suggests a stable and potentially growing future within the healthcare industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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