West Pharmaceutical Services (NYSE:WST) shares rose before hours on second-quarter results that came in ahead of the consensus forecast.
The Exton, Pennsylvania–based company posted profits of $188.5 million, or $2.48 per share, on sales of $771.3 million for the three months ended June 30, 2022, for a 0.6% bottom-line gain on sales growth of 6.6%.
Adjusted to exclude one-time items, earnings per share were $2.47, 26¢ ahead of Wall Street, where analysts were looking for sales of $755.6 million.
The company’s proprietary products segment grew by 11.3% for the quarter, with high-value product (HVP) sales representing over 70% of the $653.7 million in revenues brought in. Growth was driven by demand for the company’s NovaPure, Envision and Daikyo Crystal Zenith components and for self-injection devices.
“We delivered excellent second-quarter results with proprietary products organic net sales growth in the high-teens, led by demand for our high-value products (HVPs),” West President, CEO and Chair Eric M. Green said in a news release. “Our base business continues to be strong, reflecting our team’s successful execution of strategic initiatives and dedication to improving patient lives. In the quarter, COVID-19-related net sales slightly declined. While we expect further declines in COVID-19-related demand over the next two quarters, we also anticipate a more robust base business.
“We remain on track to expand our global HVP manufacturing capacity to support increased demand across our biologics, generics and pharma market units.”
West lowered both its EPS and sales guidance for 2022 to reflect changes in foreign currency rates and a decline in COVID-19-related net sales.
The company said it now expects to log adjusted EPS of between $9 and $9.15, compared with $9.30 to $9.45 previously, and updated its prior sales guidance for between $2.95 billion and $2.975 billion. The previous projection was between $3.05 billion and $3.075 billion.
Shares of WST (XXXXXXXXXXXXX).
