West Pharmaceutical's Q4 Performance Surpass Expectations, Expects FY22 Sales To Increase 8%

West Pharmaceutical Services Inc's WST Q4 net sales increased 26% Y/Y to $730.8 million, beating the consensus of $710.20 million. Organic sales growth was 28.3%.

• Q4 FY21 EPS reached $2.04 from $1.34 a year ago, surpassing the consensus of $1.91. 
• Gross profit increased from 36.4% to 41.1%. Adjusted operating profit margin reached 25.9%, up from 20.5% a year ago.
• "Our performance was fueled by execution across our Proprietary market units and all geographies as we serve to improve patients' lives. Our business generated strong double-digit organic sales growth in the fourth-quarter and full-year 2021, led by sales of high-value products (HVP)," said Eric Green, President & CEO.
• Proprietary Products Segment sales were up 34.2% to $609.3 million. Organic sales growth was 36.8%.
• Contract-Manufactured Products Segment revenues declined 3.6% to $121.5 million. Organic sales declined by 2.1%. Consumer products and medical device products led the segment's performance.
• Operating cash flow was $584.0 million, an increase of 23.6%. 
• Guidance: West Pharma expects FY22 sales of $3.05 billion - $3.075 billion and reported-diluted EPS of $9.20 to $9.35.
• Price Action: WST shares closed at $379.32 on Wednesday.