West Pharmaceutical Services
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), West Pharmaceutical Services beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Margins grew across the board.
West Pharmaceutical Services booked revenue of $295.4 million. The two analysts polled by S&P Capital IQ expected net sales of $290.1 million on the same basis. GAAP reported sales were 6.7% higher than the prior-year quarter's $276.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.59. The four earnings estimates compiled by S&P Capital IQ predicted $0.55 per share on the same basis. GAAP EPS of $0.54 for Q4 were 157% higher than the prior-year quarter's $0.21 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.9%, 70 basis points better than the prior-year quarter. Operating margin was 10.1%, 270 basis points better than the prior-year quarter. Net margin was 6.4%, 420 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $308.2 million. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $1.22 billion. The average EPS estimate is $2.47.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on West Pharmaceutical Services is hold, with an average price target of $44.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.