EXTON, PA — West Pharmaceutical Services, Inc. (NYSE: WST) has released its financial results for the third quarter of 2024, alongside an updated financial outlook for the year. The company reported net sales of $746.9 million, a slight decrease of 0.1% from the previous year, with an organic decline of 0.5%. The reported diluted earnings per share (EPS) stood at $1.85, down from $2.14 in the same quarter last year. The adjusted-diluted EPS mirrored this figure at $1.85, compared to $2.16 last year.
In response to favorable currency movements, West has raised its full-year 2024 net sales guidance to a range of $2.875 billion to $2.905 billion, slightly up from prior guidance. The adjusted-diluted EPS guidance has also been increased to a range of $6.55 to $6.75, up from $6.35 to $6.65 previously.
Eric M. Green, President, CEO, and Chair of the Board, expressed satisfaction with the results, stating, “We are pleased to report solid third quarter results. Our West team across the globe continues to execute at a high-level, motivated by our purpose of improving patient lives.”
West’s Board of Directors has approved a fourth-quarter dividend of $0.21 per share, marking a 5% increase from the previous $0.20 per share. This marks the thirty-second consecutive annual increase in the company’s dividend, which will be paid on November 20, 2024, to shareholders on record as of November 13.
The Proprietary Products segment experienced a minor decline in net sales by 0.2% to $601.4 million, driven by sales of high-value self-injection devices. Meanwhile, the Contract-Manufactured Products segment saw a 0.4% increase, supported by growth in self-injection devices for obesity and diabetes.
In the first nine months of 2024, West’s operating cash flow was $463.3 million, a 13.8% decrease, with capital expenditures rising by 7.4% to $272.1 million. Free cash flow dropped by 32.7% to $191.2 million. Additionally, the company repurchased over 1.4 million shares for $506.5 million.
The company also maintains its capital spending guidance for the full year at $375 million, anticipating a modest decrease in organic net sales by 1.5% to 2%. The updated guidance reflects a reduced foreign currency exchange rate headwind, now expected to impact net sales by $1.0 million, a significant improvement from the previous $5.0 million estimate.
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