West Pharmaceutical Services Earnings Preview

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If West Pharmaceutical Services (NYS: WST) misses estimates again it will be the fourth consecutive quarter for the company. The company will unveil its latest earnings on Thursday, February 16. West Pharmaceutical Services is a manufacturer of components and systems for injectable drug delivery, and plastic packaging and delivery system components for the health care and consumer products industries.

What analysts say:

  • Buy, sell, or hold?: Half of analysts think investors should stand pat on West Pharmaceutical Services while the remaining half are split between buy and sell. Analysts don't like West Pharmaceutical Services as much as competitor ICU Medical overall. Five out of five analysts rate ICU Medical a buy compared to one of four for West Pharmaceutical Services.
  • Revenue Forecasts: On average, analysts predict $290.1 million in revenue this quarter. That would represent a rise of 4.8% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.56 per share. Estimates range from $0.54 to $0.59.

What our community says:
CAPS All-Stars are solidly supporting the stock, with 87.5% granting it an "outperform" rating. The greater community is in line with the All-Stars, as 91.9% give it a rating of "outperform." Fools are keen on West Pharmaceutical Services, though the message boards have been quiet lately with only 27 posts in the past 30 days. West Pharmaceutical Services has a CAPS rating of zero out of five stars.

Management:
West Pharmaceutical Services' income has fallen year-over-year by an average of 21% over the past five quarters. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Margins illustrate how efficiently a company captures portions of sales dollars. West Pharmaceutical Services has seen slipping net margins year-over-year for the last four quarters. Net margins reflect what percentage of each dollar earned by the company becomes profit. See how West Pharmaceutical Services has been doing for the last four quarters: 

QuarterQ3Q2Q1Q4
Gross Margin27.7%27.5%29.8%28.2%
Operating Margin8.9%9%9.7%2.1%
Net Margin5.8%6.5%6.6%2.2%

One final thing: If you want to keep tabs on West Pharmaceutical Services movements, and for more analysis on the company, make sure you add it to your Watchlist.

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Earnings estimates provided by Zacks.

At the time this article was published

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