West Pharmaceutical Services, a pharmaceutical company based in Exton, PA, has surpassed expectations with its second-quarter profit despite a predicted decline in Covid-19 revenue. The company’s performance has led to an upward revision of its full-year guidance.
Earnings for the second quarter totaled $155 million, or $2.06 per share, compared to $189 million, or $2.48 per share, in the same period last year. Analysts had anticipated earnings of $1.89 per share, according to FactSet’s polls. Adjusted for certain one-time items, West reported earnings of $2.11 per share, exceeding analyst expectations of $1.93 per share.
However, sales saw a slight decline of 2.3%, reaching $754 million, falling short of the anticipated $756 million projected by analysts. When adjusting for the impact of foreign currency and acquisitions and divestitures, organic sales dropped by 2.5%. On the bright side, the contract-manufactured product segment experienced a 15% increase, primarily driven by robust sales growth in components associated with injection-related devices.
Unfortunately, West pharmaceuticals witnessed a 5.5% decline in sales for its proprietary products segments due to decreased revenue from Covid-19 related items.
Despite these challenges, the company remains optimistic about its future prospects and has raised its full-year adjusted earnings per share and net sales guidance in light of its impressive second-quarter performance.
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