NYSE$WST
West Pharmaceutical Services Inc · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Announced first-quarter 2023 results, which reflected a slight decrease in net sales but growth in organic sales, alongside updated full-year financial guidance and a declared third-quarter dividend.
West Pharmaceutical Services reported a slight decrease in net sales by 0.5% to $716.6 million, but organic sales grew by 2.3%. Reported-diluted EPS decreased by 19.2% to $1.85, and adjusted-diluted EPS declined by 13.9% to $1.98. The company updated its full-year 2023 financial guidance for net sales to a range of $2.965 billion to $2.990 billion and adjusted-diluted EPS to a range of $7.50 to $7.65.
- Net sales declined by 0.5% to $716.6 million, while organic sales increased by 2.3%.
- Reported-diluted EPS decreased by 19.2% to $1.85, and adjusted-diluted EPS decreased by 13.9% to $1.98.
- The company updated full-year 2023 net sales guidance to a new range of $2.965 billion to $2.990 billion.
- Full-year 2023 adjusted-diluted EPS guidance was updated to a new range of $7.50 to $7.65.
Headline financials
Revenue & EPS history
West Pharma · Revenue · Quarterly
$717M
Revenue by segment
West Pharma · $717M total across 2 segments · Q1 2023
- Proprietary Products$583M-3.0%81.4%
- Contract-Manufactured Products$134M+12.5%18.6%
Forward guidance
The Company is updating full-year 2023 net sales guidance to be a new range of $2.965 billion to $2.990 billion, compared to a prior range of $2.935 billion to $2.960 billion. Full-year 2023 adjusted-diluted EPS is expected to be in a range of $7.50 to $7.65, compared to prior guidance range of $7.25 to $7.40.
Tailwinds
- Organic net sales growth guidance is unchanged and is expected to be approximately 3% to 4%.
- Net sales guidance assumes COVID-19 related sales of approximately $60 million.
- Net sales guidance includes an estimated full-year 2023 tailwind of $15 million based on current foreign currency exchange rates.
- The updated guidance also includes EPS of $0.15 associated with first-quarter 2023 tax benefits from stock-based compensation.
- Full-year 2023 capital spending guidance is unchanged and is expected to be $350 million.
Headwinds
- Net sales guidance also includes a reduction of $8 million resulting from an expected divestiture of a European facility that produced standard Proprietary Product components.
- For the remaining quarters of the year, our EPS guidance range assumes a tax rate of 22% and does not include potential tax benefits from stock-based compensation.
- Reported-diluted EPS (U.S. GAAP) $7.73 to $7.34 to $7.49 ((5.0%) to (3.1%))
- Restructuring and related charges 0.29
- Pension settlement 0.42
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2023
+0.0%
Avg return
Earnings day
+0.3%
Avg return
5 days after
+1.9%
Avg return
30 days after
51%
35 / 69 earnings
Positive
+14.9%
Q1 2020
Best reaction
-38.2%
Q4 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -3.3% | +6.5% | +15.4% | |
| Q4 2025 | -1.0% | -1.2% | -4.3% | |
| Q3 2025 | +11.1% | +2.3% | -2.1% | |
| Q2 2025 | -0.0% | +0.3% | +3.0% | |
| Q1 2025 | -3.5% | -2.2% | -5.8% | |
| Q4 2024 | -38.2% | -34.5% | -28.6% | |
| Q3 2024 | +7.5% | +11.2% | +10.5% | |
| Q2 2024 | -12.0% | -7.5% | -6.5% | |
| Q1 2024 | -6.6% | -7.3% | -14.0% | |
| Q4 2023 | -11.3% | -14.2% | -5.0% | |
| Q3 2023 | -10.4% | -11.1% | -1.3% | |
| Q2 2023 | -3.7% | -2.0% | +3.8% | |
| Q1 2023 | +1.1% | +3.5% | -3.8% | |
| Q4 2022 | +12.4% | +9.9% | +18.1% | |
| Q3 2022 | -11.4% | -9.8% | -10.9% | |
| Q2 2022 | +7.2% | +5.8% | -5.2% | |
| Q1 2022 | -5.2% | -7.8% | -3.4% | |
| Q4 2021 | -2.6% | -2.7% | +9.3% | |
| Q3 2021 | +2.0% | +4.0% | +4.2% | |
| Q2 2021 | +7.2% | +9.9% | +16.4% | |
| Q1 2021 | +2.0% | +2.2% | +7.8% | |
| Q4 2020 | -4.2% | -6.7% | -5.7% | |
| Q3 2020 | -0.9% | +0.6% | +0.1% | |
| Q2 2020 | +2.9% | +3.5% | +6.3% | |
| Q1 2020 | +14.9% | +13.5% | +24.3% | |
| Q4 2019 | +7.6% | +6.8% | -9.9% | |
| Q3 2019 | +1.2% | +3.1% | +5.2% | |
| Q2 2019 | +12.0% | +12.4% | +17.2% | |
| Q1 2019 | +7.4% | +7.4% | +0.9% | |
| Q4 2018 | -3.7% | -4.0% | -2.0% | |
| Q3 2018 | -9.6% | -6.4% | -5.5% | |
| Q2 2018 | +10.0% | +10.0% | +17.2% | |
| Q1 2018 | +1.0% | -0.3% | +4.0% | |
| Q4 2017 | -8.0% | -5.7% | -4.3% | |
| Q3 2017 | +10.4% | +10.6% | +6.3% | |
| Q2 2017 | -3.4% | -5.3% | -7.8% | |
| Q1 2017 | +9.6% | +12.2% | +15.5% | |
| Q4 2016 | -4.4% | -4.0% | -4.9% | |
| Q3 2016 | +3.9% | +5.2% | +16.3% | |
| Q2 2016 | +2.4% | +3.0% | +4.0% | |
| Q1 2016 | -1.2% | — | — | |
| Q4 2015 | +4.1% | — | — | |
| Q3 2015 | +0.1% | — | — | |
| Q2 2015 | -1.2% | — | — | |
| Q1 2015 | -3.1% | — | — | |
| Q4 2014 | +2.7% | — | — | |
| Q3 2014 | +8.3% | — | — | |
| Q2 2014 | -0.1% | — | — | |
| Q1 2014 | +0.5% | — | — | |
| Q4 2013 | +0.8% | — | — | |
| Q3 2013 | +0.6% | — | — | |
| Q2 2013 | +3.4% | — | — | |
| Q1 2013 | +1.2% | — | — | |
| Q4 2012 | +3.3% | — | — | |
| Q3 2012 | -2.3% | — | — | |
| Q2 2012 | +2.6% | — | — | |
| Q1 2012 | +0.9% | — | — | |
| Q4 2011 | -2.1% | — | — | |
| Q3 2011 | +2.2% | — | — | |
| Q2 2011 | +2.1% | — | — | |
| Q1 2010 | -0.6% | — | — | |
| Q1 2011 | +1.4% | — | — | |
| Q4 2008 | -1.9% | — | — | |
| Q4 2010 | -1.9% | — | — | |
| Q3 2010 | -0.7% | — | — | |
| Q3 2009 | -0.7% | — | — | |
| Q2 2009 | -2.4% | — | — | |
| Q4 2009 | -2.4% | — | — | |
| Q2 2010 | -2.4% | — | — |
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