NYSE$WST

West Pharmaceutical Services Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

West Pharmaceutical Services' financial performance declined in Q4 2022, with net sales and EPS decreasing compared to the prior-year period. The company introduced full-year 2023 financial guidance and approved a share repurchase program.

West Pharmaceutical Services reported a decrease in net sales and EPS for Q4 2022 compared to the prior-year period. Net sales decreased by 3.0% to $708.7 million, and reported-diluted EPS decreased by 29.5% to $1.36. The company is introducing full-year 2023 financial guidance of net sales in a range of $2.935 billion to $2.960 billion and adjusted-diluted EPS in a range of $7.25 to $7.40.

  • Fourth-quarter net sales decreased by 3.0% to $708.7 million, with organic net sales growth of 2.6%.
  • Reported-diluted EPS for the fourth quarter decreased by 29.5% to $1.36, while adjusted-diluted EPS decreased by 13.2% to $1.77.
  • The company introduced full-year 2023 financial guidance, projecting net sales between $2.935 billion and $2.960 billion and adjusted-diluted EPS between $7.25 and $7.40.
  • A share repurchase program was approved, allowing the company to repurchase up to $1.0 billion in shares of common stock.

Headline financials

Total Revenue

$709M

Previous: $731M-3.0%
EPS (adj)

$1.77

Previous: $2.04-13.2%
Organic Net Sales Growth

2.6%

Previous: 28.3%-90.8%
Capital Expenditures

$94.9M

Previous: $76.5M+24.1%
Free Cash Flow

$439M

Previous: $331M+32.9%
Net Income

$103M

Previous: $148M-30.3%
Operating Income

$130M

Previous: $184M-29.5%
Gross Profit

$262M

Previous: $301M-12.8%
Cash & Equivalents

$894M

Previous: $763M+17.3%
Total Assets

$2.68B

Previous: $3.31B-19.0%
Stock-Based Comp

$6.7M

Previous: $10M-33.0%

Revenue & EPS history

West Pharma · Revenue · Quarterly

$709M

Q4 2022-3%vs Q4 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

West Pharma · $709M total across 2 segments · Q4 2022

  • Proprietary Products
    $585M-4.0%
  • Contract-Manufactured Products
    $124M+2.0%

Forward guidance

Full-year 2023 net sales are expected to be in a range of $2.935 billion to $2.960 billion. Full-year 2023 adjusted-diluted EPS is expected to be in a range of $7.25 to $7.40. Full-year 2023 capital spending is expected to be $350 million.

Tailwinds

  • Net sales are expected to be in a range of $2.935 billion to $2.960 billion.
  • Organic net sales growth is expected to be approximately 3% to 4%.
  • Adjusted-diluted EPS is expected to be in a range of $7.25 to $7.40.
  • Capital spending is expected to be $350 million.
  • Incremental capital spending to support capacity expansions at existing HVP facilities.

Headwinds

  • Net sales guidance assumes COVID-19 related sales of approximately $85 million, compared to $388 million in 2022.
  • Net sales guidance includes an estimated full-year 2023 headwind of $30 million based on current foreign currency exchange rates.
  • Adjusted-diluted EPS guidance range includes an estimated headwind of approximately $0.11 based on current foreign currency exchange rates.
  • Adjusted-diluted EPS guidance range assumes a full-year 2023 tax rate of approximately 23%, which does not include potential tax benefits from stock-based compensation.
  • Potential tax benefits from stock-based compensation are not included, as they are out of the Company's control.

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 Q4 2022

Historical avgQ4 2022

+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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