- West Pharma lowered its FY adjusted EPS forecast to $6.35-$6.65, down from the previous $7.63-$7.88.
- The company’s EPS estimate was also reduced from $7.74 to $6.35-$6.65.
- 2024 net sales guidance now stands between $2.87 billion and $2.90 billion, compared to the earlier range of $3.00 billion to $3.03 billion.
- Second quarter adjusted EPS was $1.52, a decrease from $2.11 y/y, and fell short of the $1.74 estimate.
- Second quarter net sales were $702.1 million, a 6.9% decline compared to the same period last year, missing the $729.3 million estimate.
- Proprietary Products net sales for Q2 were $559.7 million, down 9.4% y/y, missing the $592.8 million estimate.
- Contract Manufacturing net sales rose to $142.4 million, an increase of 4.9% y/y, surpassing the $138.1 million estimate.
- Organic sales decreased by 5.9% in Q2.
- Q2 adjusted operating income was $126.4 million, a 32% decrease y/y, and below the $155.1 million estimate.
- Full-year 2024 revenue outlook is now between $2.870 billion and $2.900 billion, down from the original $3.000 billion to $3.025 billion.
- Foreign currency exchange rates are expected to be a $5.0 million headwind for full-year 2024, compared to the previous $8.0 million headwind estimate.
- CEO Eric M. Green cited elevated customer destocking as impacting Q2, but expressed confidence in a return to organic growth by Q4 and into 2025.
- Analyst ratings include 6 buys, 5 holds, and 0 sells.
West Pharmaceutical Services Inc on Smartkarma
Analyst coverage of West Pharmaceutical Services Inc on Smartkarma reveals insightful perspectives on the company’s performance and future prospects. In a report titled “West Pharmaceutical Services: Contract Manufacturing Expansion & Other Major Drivers,” published by Baptista Research, the analysis highlights the company’s strong start in 2024 despite challenges in the market. Factors such as organic sales decrease and customer destocking influenced the firm’s Q1 2023 results. Baptista Research delves into various drivers that could impact the company’s stock price and conducts an independent valuation using a Discounted Cash Flow (DCF) methodology.
Furthermore, in another report by Baptista Research titled “West Pharmaceutical Services: Regulatory Shift Driving Increased Demand for High Value Products! – Major Drivers,” the focus is on the company’s fourth quarter 2023 earnings conference call. West Pharmaceutical Services demonstrated a significant base growth in 2023, offsetting a decline in COVID-19 related sales. The growth trajectory was propelled by rising customer demand for the company’s high-value product offerings and contract manufacturing services. These insights provide investors with a comprehensive understanding of West Pharmaceutical Services Inc‘s position in the market and the factors shaping its future growth potential.
A look at West Pharmaceutical Services Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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, has received favorable Smartkarma Smart Scores. With a Growth score of 4 and Resilience score of 4, the company shows promising long-term potential for expansion and ability to withstand challenges. Additionally, a Momentum score of 3 suggests a steady pace of development and market presence. While Value and Dividend scores are at 2, indicating moderate performance in these areas, the overall outlook for West Pharmaceutical Services Inc appears positive based on the Smart Scores.
West Pharmaceutical Services Inc leverages its technologies in packaging components, drug delivery systems, and laboratory services to enhance the process of pharmaceutical development and distribution. With strong Growth and Resilience scores, the company is well-positioned for sustained success in the healthcare industry. While there is room for improvement in Value and Dividend scores, the solid performance in Growth, Resilience, and Momentum factors bodes well for the company’s long-term prospects.
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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