West Pharmaceutical Services, a provider of services to drugmakers, has revised its sales forecast for 2023 due to changes in ordering protocols by pharmaceutical companies. Despite this adjustment, the company has raised its adjusted earnings projection for the year.
Adjusted Earnings Outlook
West Pharma has increased its adjusted earnings projection for 2023 to a range between $7.95 and $8 per share. Previously, the range was set at $7.65 to $7.80 per share. The company expects a 7-cents-per-share boost from foreign-exchange rates, exceeding the 5-cents-per-share boost included in the previous estimate. The current estimate assumes a tax rate of 22%.
Revised Sales Expectations
In light of recent trends, West Pharma now anticipates 2023 sales between $2.95 billion and $2.96 billion. This is slightly lower than the prior estimate of $2.97 billion to $2.995 billion.
Observations on Restocking Trends
Eric Green, the President and Chief Executive of West Pharma, noted a slowdown in restocking trends by large pharma and generic customers. This observation influenced the adjustment in sales forecast.
West Pharma has reaffirmed its projection for 2023 capital-expenditure, which stands at $350 million.