West Pharmaceutical Services
The 10-second takeaway
For the quarter ended June 30 (Q2), West Pharmaceutical Services missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share grew significantly.
Gross margins grew, operating margins were steady, net margins grew.
West Pharmaceutical Services logged revenue of $344.5 million. The two analysts polled by S&P Capital IQ looked for net sales of $349.9 million on the same basis. GAAP reported sales were 6.1% higher than the prior-year quarter's $324.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.86. The four earnings estimates compiled by S&P Capital IQ anticipated $0.83 per share. GAAP EPS of $0.86 for Q2 were 91% higher than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 32.2%, 180 basis points better than the prior-year quarter. Operating margin was 12.3%, much about the same as the prior-year quarter. Net margin was 8.8%, 400 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $334.0 million. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $1.37 billion. The average EPS estimate is $3.14.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on West Pharmaceutical Services is outperform, with an average price target of $66.67.
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