On July 23, 2020 West Pharmaceutical Services, Inc. (NYSE: WST) reported its financial results for the second-quarter 2020 and updated full-year 2020 financial guidance (Press release, West Pharmaceutical Services, JUL 23, 2020, View Source [SID1234562268]).

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Second-Quarter 2020 Summary (comparisons to prior-year period)

Net sales of $527.2 million grew 12.2%; organic sales growth was 14.3%.
Reported-diluted EPS of $1.21 increased 38%.
Adjusted-diluted EPS of $1.25 increased 40%.
Company is raising full-year 2020 net sales guidance to a new range of between $2.035 billion and $2.055 billion.
Company is raising full-year 2020 adjusted-diluted EPS guidance to a new range of between $4.15 and $4.25.
"Adjusted-diluted EPS" and "organic sales growth" are Non-U.S. GAAP measurements. See discussion under the heading "Non-U.S. GAAP Financial Measures" in this release.

"Our second quarter results reflect the strength and resiliency of our business in today’s environment," said Eric M. Green, President and Chief Executive Officer. "We continue to see underlying demand growth in our existing business for our high-value products and in high adoption rates from customers who are developing therapeutics and vaccines to address the COVID-19 pandemic."

Mr. Green continued, "The outlook for the balance of 2020 remains robust; and with our One West philosophy, broad range of innovative solutions and the ability to flex our global operating network, we are well positioned. I am extremely proud of our colleagues’ response to the challenging landscape and the dedicated focus on delivering high-quality components and solutions to our customers."

Proprietary Products Segment
Net sales grew by 10.9% to $399.5 million. Organic sales growth was 13.3%, with currency translation decreasing sales growth by 240 basis points. High-value products (HVP) represented 65% of segment sales and generated double-digit organic sales growth.

Our Biologics market unit had double-digit organic sales growth, led by customer purchases of film-coated components (Flurotec and Daikyo), self-injection platforms, Westar and Crystal Zenith components. Our Generics market unit posted double-digit organic sales growth, and our Pharma market unit grew organic sales by low-single digits. Both Generics and Pharma market units were led by sales of film-coated and Westar components.

Contract-Manufactured Products Segment
Net sales grew by 16.8% to $127.8 million. Organic sales growth was 17.8% with currency translation decreasing sales growth by 100 basis points. Segment performance was led by strong sales of healthcare-related injection and diagnostic devices.

Financial Highlights (first six months of 2020)
Operating cash flow was $205.2 million, an increase of 34%. Capital expenditures were $69.2 million. Free cash flow (operating cash flow minus capital expenditures) was $136.0 million, an increase of 42%.

Full-Year 2020 Financial Guidance

Full-year 2020 net sales guidance is expected to be in a range of between $2.035 billion and $2.055 billion, compared to a prior range of between $1.95 billion and $1.97 billion.
Organic sales growth is expected to be approximately 12%, compared to a prior guidance range of 8%.
Net sales guidance includes an estimated full-year headwind of $26 million for the full-year 2020 based on current foreign exchange rates, unchanged from prior guidance.
Full-year 2020 adjusted-diluted EPS is expected to be in a range of between $4.15 and $4.25, compared to a prior range of between $3.52 and $3.62.
Full-year adjusted-diluted EPS guidance includes an estimated headwind of approximately $0.07 based on current foreign currency exchange rates, unchanged from prior guidance.
The revised guidance includes a $0.16 EPS impact from tax benefits from stock-based compensation in the first six months of 2020.
For the remainder of the year, our EPS guidance range assumes a tax rate of 24% and does not include potential tax benefits from stock-based compensation. Any tax benefits associated with stock-based compensation beyond those recorded in the first six months of 2020 would provide a positive adjustment to our full-year EPS guidance.
Second-Quarter 2020 Conference Call
The Company will host a conference call to discuss the results and business expectations at 9:00 a.m. Eastern Time today. To participate on the call please dial 877-930-8295 (U.S.) or 253-336-8738 (International). The conference ID is 7789173.

A live broadcast of the conference call will be available at the Company’s website, www.westpharma.com, in the "Investors" section. Management will refer to a slide presentation during the call, which will be made available on the day of the call. To view the presentation, select "Presentations" in the "Investors" section of the Company’s website.

An online archive of the broadcast will be available at the website three hours after the live call and will be available through Thursday, July 30, 2020, by dialing 855-859-2056 (U.S.) or 404-537-3406 (International) and entering conference ID 7789173.