#USA #financial results #West Pharmaceutical #EPS Guidance #Exton, PA

West Pharmaceutical Services Reports Financial Results for 2024

West Pharmaceutical Services, Inc. (NYSE: WST) has announced its financial performance for the fourth quarter and full year of 2024, highlighting key areas of growth and providing guidance for the upcoming fiscal year.

Fourth Quarter Highlights

In the fourth quarter of 2024, West achieved net sales of $748.8 million, which reflects a 2.3% increase compared to the same period last year. Organic net sales experienced a more robust growth of 3.3%. Adjusted-diluted earnings per share (EPS) were reported at $1.82, a slight decrease of 0.5%, while the reported-diluted EPS stood at $1.78, down 2.7%.

2025 Financial Guidance

As the company looks forward, it anticipates net sales in the range of $2.875 billion to $2.905 billion for the full year of 2025, with adjusted-diluted EPS projected between $6.00 and $6.20. Eric M. Green, the President and CEO, expressed satisfaction with the company's continued momentum, particularly in the Proprietary Products segment, driven by favorable trends in high-value products (HVPs) related to biologics and generics. He noted, "Our core businesses continue to benefit from our market-leading positions and proprietary processes."

Segment Performance

In reviewing segment performance for the fourth quarter, the Proprietary Products segment reported net sales of $613.9 million, a 4.5% increase in organic growth. Notably, self-injection device platforms drove demand, contributing significantly to sales. Conversely, the Contract-Manufactured Products segment saw a 2.5% decline in net sales to $134.9 million, primarily due to decreased sales of healthcare diagnostic devices.

For the entirety of 2024, overall net sales were recorded at $2.893 billion, a 1.9% decrease from the previous year, alongside an adjusted-diluted EPS of $6.75, marking a decline of 16.5% compared to 2023. The company reported an operating cash flow of $653.4 million, down 15.9%, with capital expenditures slightly rising by 4.1% to $377 million.

Share Repurchase Program

2024 also saw West Pharmaceutical repurchasing a total of 1,583,032 shares at an average price of $354.30, costing the company approximately $560.9 million under its share repurchase program. This ongoing commitment to returning value to shareholders remains a cornerstone of the company’s financial strategy.

Looking Ahead

For 2025, the organization expects to continue its trajectory of growth with organic sales forecasted to increase by approximately 2% to 3%. However, challenges such as foreign currency exchange rate fluctuations may pose headwinds, estimated to impact results by around $75 million for the upcoming year. West also plans to invest $275 million in capital spending to support ongoing expansions and improvements in operational capabilities.

Conclusion

West Pharmaceutical Services' solid performance in 2024, coupled with strategic plans for 2025, underlines its resilience and commitment to growth in the pharmaceutical sector. Stakeholders can tune into the live conference call at 9 a.m. EDT today for further discussion on the financial results and future outlook, accessible via the company’s Investor Relations website.