West Pharmaceutical(US:WST) ZACKSยท2025-07-24 15:50Core Insights - West Pharmaceutical Services, Inc. (WST) reported adjusted second-quarter 2025 earnings per share (EPS) of $1.84, a 21.5% increase year over year, exceeding the Zacks Consensus Estimate by 21.9% [1][6] - Quarterly revenues reached $766.5 million, reflecting a 9.2% year-over-year growth and surpassing the Zacks Consensus Estimate by 5.4% [2][6] - The company raised its full-year 2025 EPS guidance to $6.65-$6.85, citing favorable foreign exchange impacts and tariff-related benefits [15] Revenue Performance - Organic net sales increased by 6.8% year over year, driven by strong performances in the Proprietary Products and Contract-Manufactured Products segments [2][6] - Proprietary Products segment revenues were $619.8 million, up 10.7% year over year, outperforming estimates [4][6] - Contract-Manufactured Products segment revenues totaled $146.7 million, a 3% increase year over year, supported by sales of self-injection devices [8][6] Margin and Profitability - Gross profit rose 19.1% year over year to $273.9 million, with gross margin expanding by 290 basis points to 35.7% [10] - Adjusted operating profit improved by 22.9% to $155.3 million, with an adjusted operating margin of 20.3% [11] Financial Position - The company ended the quarter with cash and cash equivalents of $509.7 million, up from $404.2 million at the end of the previous quarter [12] - Total debt remained stable at $202.6 million, with cumulative net cash from operating activities increasing to $306.5 million [12] Future Outlook - WST updated its full-year revenue guidance to between $3.04 billion and $3.06 billion, up from previous estimates [14] - Organic net sales are expected to grow by 3-3.75% from the prior year [14] - The company anticipates low-single-digit organic revenue growth for the Contract-Manufactured Products segment in 2025 [17]