West Pharmaceutical Services, Inc.
CEO : Mr. Eric M. Green
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2023 Q2 | -2.3% YoY | -20.1% | -17.8% | 2023-07-27 |
Dave Ruud says,
Financial Results
- Operating earnings for Q2 2023 were $206 million, translating to $0.99 per share.
- DTE Electric earnings were $178 million, $8 million lower than Q2 2022, primarily due to cooler weather and lower residential sales.
- DTE Gas operating earnings were $24 million, $18 million higher than Q2 2022, driven by cost reductions and increased revenue from IRM.
- DTE Vantage operating earnings were $26 million, a decrease of $2 million from Q2 2022, mainly due to planned outage timings at renewables plants.
- Energy Trading earnings were $36 million, $29 million higher than Q2 2022, attributed to timing variability and contract premiums in the physical power portfolio for 2023.
- Corporate and Other earnings were unfavorably impacted by $2 million due to higher interest expense.
2023 Guidance
- Overall EPS guidance for 2023 remains on track to achieve the midpoint of the guidance range.
- DTE Electric is facing headwinds, including lower rate orders and unfavorable weather, which may cause it to fall below the guidance range.
- Favorability is expected in other business units, with DTE Gas benefiting from one-time cost reductions, DTE Vantage from stronger pricing and additional projects, and Energy Trading from contracted power portfolio and hedging.
- All business units have implemented one-time cost reductions.
- The company plans to achieve the midpoint of operating EPS guidance range for DTE and will update business unit guidance after summer weather plays out.
- Guidance assumes average weather for the remainder of the year without contingencies.
- The company remains focused on delivering long-term EPS growth and premium returns for shareholders.
Capital Plan and Outlook
- The company’s capital plan supports long-term operating EPS growth, cleaner generation, increased reliability, and customer affordability.
- The plan targets 6% to 8% operating EPS growth through 2027 and a dividend growing in line with operating EPS.
- Utility regulatory filings are advancing, and the company is pursuing a constructive settlement in the electric rate case.
Gerry Norcia says,
Continued surge of tree trim
- Expecting the surge to end in two years
- Transitioning to a maintenance cycle
Pull-top maintenance
- Replacing press arms, insulators, and equipment
- Significant part of the plan for the aging system
Automation
- Aiming for full automation of the grid in five years
- Increasing storms necessitate automation for outage restoration
Replacement of old grid
- 1/3 of the grid is outdated (4,800 volt system)
- Installed from the early 1900s through the ’60s
- Plan to replace approximately 16,000 miles over the next 15 or 20 years
Q & A sessions,
Transportation electrification
- The company sees transportation electrification as a valuable opportunity for several reasons.
- It believes that it is great for the environment, as the transportation sector is currently the largest emitter of carbon in the economy.
- The company expects transportation electrification to become a significant contribution to margin growth near the end of its 5-year plan.
Investment opportunity
- The company sees an investment opportunity in transportation electrification.
- As more load comes on, it creates headroom for investments and helps finance large investments being made to prepare for electrification and deal with inclement weather.
Supportive stakeholders
- The company is happy that its new commissioner, as well as the other two commissioners, are supportive of the electrification agenda.
- The administration is also supportive of electrification.
Impact on the 5-year plan
- Transportation electrification is expected to become more impactful in the company’s plan from a margin creation perspective later in the 5-year period.
Investments already being made
- The company is already investing against the opportunity presented by transportation electrification.
No bad stock 