West Pharma (WST) Tops Q1 EPS by 19c, Revenues Beat; Raises FY20 EPS Guidance Above Consensus, FY20 Revenue Outlook Above Consensus

West Pharma (NYSE: WST) reported Q1 EPS of $1.01, $0.19 better than the analyst estimate of $0.82. Revenue for the quarter came in at $491.5 million versus the consensus estimate of $466.79 million.

First-Quarter 2020 Summary (comparisons to prior-year period)

Net sales of $491.5 million grew 10.8%; organic sales growth was 12.7%.
Reported-diluted EPS of $0.99 increased 36%.
Adjusted-diluted EPS of $1.01 increased 36%.
The Company is maintaining full-year 2020 net sales guidance and is updating full-year 2020 adjusted-diluted EPS guidance to a new range of $3.52 to $3.62, compared to a prior range of $3.45 to $3.55.

"Adjusted-diluted EPS" and "organic sales growth" are Non-U.S. GAAP measurements. See discussion under the heading "Non-U.S. GAAP Financial Measures" in this release.

"During these unprecedented times, our priorities are focused on the well-being and safety of our team members as well as ensuring the supply of critical, high-quality components and solutions to our customers," said Eric M. Green, President and Chief Executive Officer. "I am extremely pleased that we delivered a strong performance in the first quarter given the challenging environment that the COVID-19 pandemic has had on our customers, our suppliers and our team members. In particular, we continued to deliver strong sales growth in high-value products, as demand trends from our worldwide customer base were similar to trends we saw last year. Additionally, our teams are partnering with a broad range of customers working to support efforts to develop solutions that address the global COVID-19 pandemic such as diagnostics, anti-viral therapeutics and vaccines."

Mr. Green continued, "I am proud with the way our team across the globe is responding during these challenging times. They exemplify our One West philosophy in the way they are supporting our customers, patients and the local communities where our team members live and work."

GUIDANCE:

West Pharma sees FY2020 EPS of $3.52-$3.62, versus the consensus of $3.39. West Pharma sees FY2020 revenue of $1.95-1.97 billion, versus the consensus of $1.94 billion.

Full-Year 2020 Financial Guidance

• Full-year 2020 net sales guidance continues to be in a range of $1.95 billion to $1.97 billion.
  • Organic sales growth is expected to be approximately 8%, compared to a prior guidance range of 7% to 8%.
  • Net sales guidance includes an estimated full-year headwind of $26 million for the full-year 2020 based on current foreign exchange rates, compared to prior guidance of $15 million.
• Full-year 2020 adjusted-diluted EPS is expected to be in a range of $3.52 to $3.62, compared to prior guidance range of $3.45 to $3.55.
  • Full-year adjusted-diluted EPS guidance includes an estimated headwind of approximately $0.07 based on current foreign currency exchange rates, compared to prior guidance of approximately $0.04.
  • The revised guidance includes a $0.07 EPS impact from first-quarter tax benefits from stock-based compensation.
  • For the remainder of the year, our EPS guidance range assumes a tax rate of 24% and does not include potential tax benefits from stock-based compensation. Any tax benefits associated with stock-based compensation beyond those recorded in the first-quarter 2020 would provide a positive adjustment to our full-year EPS guidance.

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

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