NYSE$WST

West Pharmaceutical Services Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Announced second-quarter 2021 results, showing strong growth driven by organic sales and increased demand for products associated with COVID-19 vaccines.

West Pharmaceutical Services reported a strong second quarter with net sales of $723.6 million, a 37.3% increase, and diluted EPS of $2.47, a 104% increase. The company is raising its full-year 2021 net sales and adjusted-diluted EPS guidance.

  • Net sales grew by 37.3% to $723.6 million, with organic sales growth of 30.6%.
  • Reported diluted EPS increased by 104% to $2.47.
  • Adjusted diluted EPS increased by 97% to $2.46.
  • Full-year 2021 net sales guidance raised to $2.760 billion to $2.785 billion, and adjusted-diluted EPS guidance raised to $8.05 to $8.20.

Headline financials

Total Revenue

$724M

Previous: $527M+37.3%
EPS (adj)

$2.46

Previous: $1.25+96.8%
Organic Net Sales Growth

30.6%

Previous: 14.3%+114.0%
Capital Expenditures

-$112M

Previous: -$69.2M-61.3%
Free Cash Flow

$75.7M

Previous: $22M+244.1%
Net Income

$187M

Previous: $91.2M+105.4%
Operating Income

$211M

Previous: $104M+104.0%
Gross Profit

$315M

Previous: $195M+61.5%
Cash & Equivalents

$576M

Previous: $446M+29.2%
Total Assets

$2.93B

Previous: $2.39B+22.6%
Stock-Based Comp

$10.3M

Previous: $12.3M-16.3%

Revenue & EPS history

West Pharma · Revenue · Quarterly

$724M

Q2 2021+37.3%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

West Pharma · $724M total across 2 segments · Q2 2021

  • Proprietary Products
    $587M+47.0%
  • Contract-Manufactured Products
    $136M+6.7%

Forward guidance

Full-year 2021 net sales are expected to be in a range of $2.760 billion to $2.785 billion. Full-year 2021 adjusted-diluted EPS is expected to be in a range of $8.05 to $8.20.

Tailwinds

  • Organic sales growth is expected to be in a range of 24% to 25%.
  • Net sales guidance includes an estimated full-year 2021 benefit of $80 million based on current foreign exchange rates.
  • Full-year adjusted-diluted EPS guidance range includes an estimated benefit of approximately $0.27 based on current foreign currency exchange rates.
  • The revised guidance includes a $0.24 EPS positive impact from first-half 2021 tax benefits from stock-based compensation.
  • Any tax benefits associated with stock-based compensation beyond those recorded in the first-half 2021 would provide a positive adjustment to our full-year EPS guidance.

Headwinds

  • Guidance assumes a tax rate of 23% for the remainder of the year.
  • Guidance does not include potential tax benefits from stock-based compensation for the remainder of the year.
  • Dependence on third-party suppliers and partners.
  • Increased raw material costs.
  • Fluctuations in currency exchange.

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 Q2 2021

Historical avgQ2 2021

+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

Earnings price reactions
QuarterReport dateReaction (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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