West Pharma (WST) Tops Q4 EPS by 10c, Revenues Beat; Initiates FY20 EPS/Revenue Mid-Point Guidance Above Consensus

West Pharma (NYSE: WST) reported Q4 EPS of $0.82, $0.10 better than the analyst estimate of $0.72. Revenue for the quarter came in at $470.6 million versus the consensus estimate of $451.53 million.

Fourth-Quarter and Full-Year 2019 Summary (comparisons to prior-year period)

• Fourth-quarter 2019 net sales of $470.6 million grew 11.4%; organic sales growth was 12.7%; sales from a recent acquisition contributed an additional 30 basis points of growth; currency translation reduced sales by 160 basis points.
• Full-year 2019 net sales of $1.840 billion grew 7.1%; organic sales growth was 10.0%; sales from a recent acquisition contributed an additional 10 basis points of growth; currency translation reduced sales by 300 basis points.
• Fourth-quarter 2019 reported-diluted EPS of $0.84 increased 22%. Full-year 2019 reported-diluted EPS of $3.21 increased 17%.
• Fourth-quarter 2019 adjusted-diluted EPS of $0.82 increased 12%. Full-year 2019 adjusted-diluted EPS of $3.24 increased 15%.
• Company is introducing full-year 2020 financial guidance of net sales in a range of $1.95 billion to $1.97 billion and reported-diluted EPS in a range of $3.45 to $3.55.

"I am pleased to report strong fourth-quarter 2019 sales and EPS growth, which continues a trend seen throughout the year," said Eric M. Green, President and Chief Executive Officer. "We had double-digit organic sales growth in all three market units of our Proprietary Products segment. High-value products (HVPs) once again fueled sales growth and gross margin expansion, led by Daikyo® and Westar® components."

Mr. Green continued, "We are introducing full-year 2020 financial guidance that is in line with our long-term financial construct of organic sales growth and operating margin expansion. Our end markets are stable and growing, and we are off to a good start to 2020 with a strong book of committed orders for our high value products, such as NovaPure® and Envision® components, as well as Daikyo Crystal Zenith® containers and our portfolio of self-injection delivery platforms. Our teams across the globe have demonstrated their passion for customers throughout 2019, with new product and services offerings, and are poised to deliver another strong year of sales and profit growth for our business in 2020."

GUIDANCE:

West Pharma sees FY2020 EPS of $3.45-$3.55, versus the consensus of $3.46. West Pharma sees FY2020 revenue of $1.95-1.97 billion, versus the consensus of $1.95 billion.

• The Company expects full-year 2020 net sales guidance to be in a range of $1.95 billion to $1.97 billion.
  • Organic sales growth is expected to be in the range of 7% to 8%.
  • Net sales guidance includes an estimated headwind of $15 million for the full-year 2020 based on current foreign exchange rates.
• The Company expects full-year 2020 reported-diluted EPS to be in the range of $3.45 to $3.55.
  • This includes an estimated headwind of approximately $0.04 based on current foreign currency exchange rates.
  • This reported-diluted EPS guidance range assumes a full-year 2020 tax rate of 24%, which does not include potential tax benefits from stock-based compensation. As in prior years, we are not including potential 2020 tax benefits from stock-based compensation, as they are out of the Company's control. Any tax benefits associated with stock-based compensation that we receive in 2020 would provide a positive adjustment to our full-year EPS guidance.
• Full-year 2020 capital spending is expected to be approximately 7% of expected full-year 2020 net sales.

For earnings history and earnings-related data on West Pharma (WST) click here.

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