Healthcare products company West Pharmaceutical Services (NYSE:WST) will be reporting earnings tomorrow morning. Here’s what to look for.
West Pharmaceutical Services beat analysts’ revenue expectations by 5.2% last quarter, reporting revenues of $746.9 million, flat year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.
Is West Pharmaceutical Services a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting West Pharmaceutical Services’s revenue to grow 1.1% year on year to $740.2 million, slowing from the 3.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.73 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. West Pharmaceutical Services has missed Wall Street’s revenue estimates four times over the last two years.
Looking at West Pharmaceutical Services’s peers in the drug development inputs & services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Azenta delivered year-on-year revenue growth of 4.1%, beating analysts’ expectations by 1.1%, and IQVIA reported revenues up 2.3%, topping estimates by 0.6%. Azenta traded up 4% following the results while IQVIA was also up 1.5%.
Read our full analysis of Azenta’s results here and IQVIA’s results here.
Investors in the drug development inputs & services segment have had steady hands going into earnings, with share prices flat over the last month. West Pharmaceutical Services is down 2.1% during the same time and is heading into earnings with an average analyst price target of $379.85 (compared to the current share price of $322.40).
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