WASHINGTON (dpa-AFX) - (Adds Outlook, stock movement)
West Pharmaceutical Services, Inc. (WST) slashed its annual guidance, below analysts' estimates.
Eric M. Green, CEO of West Pharmaceutical, said: The second quarter continued to be impacted by an elevated level of customer destocking. While the results were below our expectations, we were encouraged to see our second-quarter revenues increase sequentially. Our outlook anticipates that revenues in the second half of the year will be stronger than the first half.'
For the full year, the company now expects adjusted earnings per share of $6.35 to $6.65 versus its previous outlook of $7.63 to $7.88. Annual sales are now projected to be in the range of $2.870 billion to $2.900 billion, lower that the earlier expectation $3 billion to $3.025 billion.
Analysts, on average, expect the firm to post EPS of $7.74, on revenue of $3.01 billion, for the year. Annual capital spending is now expected to be at $375 million, up from the previous estimate of $350 million.
WST was trading down by 9.78 percent at $292.12 in the pre-market trade on the New York Stock Exchange.
Q2 Results:
West Pharmaceutical Services revealed a profit for second quarter that decreased from last year and missed the Street estimates.
The company's earnings came in at $111.3 million, or $1.51 per share. This compares with $155.1 million, or $2.06 per share, in last year's second quarter.
Excluding items, West Pharmaceutical Services Inc. reported adjusted earnings of $112 million or $1.52 per share for the period.
Analysts on average had expected the company to earn $1.74 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter fell 6.9% to $702.1 million from $753.8 million last year.
West Pharmaceutical Services Inc. earnings at a glance (GAAP) :
-Earnings (Q2): $111.3 Mln. vs. $155.1 Mln. last year. -EPS (Q2): $1.51 vs. $2.06 last year. -Revenue (Q2): $702.1 Mln vs. $753.8 Mln last year.
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