West Pharma (WST) Tops Q2 EPS by 34c, Revenues Beat; Raises FY20 EPS/Revenue Guidance Above Consensus

West Pharma (NYSE: WST) reported Q2 EPS of $1.25, $0.34 better than the analyst estimate of $0.91. Revenue for the quarter came in at $527.2 million versus the consensus estimate of $496.09 million.

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

• Net sales of $527.2 million grew 12.2%; organic sales growth was 14.3%.
• Reported-diluted EPS of $1.21 increased 38%.
• Adjusted-diluted EPS of $1.25 increased 40%.
• Company is raising full-year 2020 net sales guidance to a new range of between $2.035 billion and $2.055 billion.
• Company is raising full-year 2020 adjusted-diluted EPS guidance to a new range of between $4.15 and $4.25.

"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.

"Our second quarter results reflect the strength and resiliency of our business in today's environment," said Eric M. Green, President and Chief Executive Officer. "We continue to see underlying demand growth in our existing business for our high-value products and in high adoption rates from customers who are developing therapeutics and vaccines to address the COVID-19 pandemic."

Mr. Green continued, "The outlook for the balance of 2020 remains robust; and with our One West philosophy, broad range of innovative solutions and the ability to flex our global operating network, we are well positioned. I am extremely proud of our colleagues' response to the challenging landscape and the dedicated focus on delivering high-quality components and solutions to our customers."

GUIDANCE:

West Pharma sees FY2020 EPS of $4.15-$4.25, versus the consensus of $3.64. West Pharma sees FY2020 revenue of $2.035-2.055 billion, versus the consensus of $1.97 billion.

• Full-year 2020 net sales guidance is expected to be in a range of between $2.035 billion and $2.055 billion, compared to a prior range of between $1.95 billion and $1.97 billion.
• Organic sales growth is expected to be approximately 12%, compared to a prior guidance range of 8%.
• Net sales guidance includes an estimated full-year headwind of $26 million for the full-year 2020 based on current foreign exchange rates, unchanged from prior guidance.
• Full-year 2020 adjusted-diluted EPS is expected to be in a range of between $4.15 and $4.25, compared to a prior range of between $3.52 and $3.62.
• Full-year adjusted-diluted EPS guidance includes an estimated headwind of approximately $0.07 based on current foreign currency exchange rates, unchanged from prior guidance.
• The revised guidance includes a $0.16 EPS impact from tax benefits from stock-based compensation in the first six months of 2020.
• 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 six months of 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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