Yahoo Finance Is a Beat Likely for West Pharmaceutical (WST) in Q1 Earnings?
West Pharmaceutical Services WST is scheduled to release first-quarter 2024 results on Apr 25, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 2.81%. WST’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 11.43%.
Q1 Estimates
Currently, the Zacks Consensus Estimate for revenues is pegged at $673.4 million, indicating a decline of 6% from the year-ago period’s level. The consensus mark for earnings is pinned at $1.29 per share, indicating a decline of 34.9% year over year.
Factors to Note
West Pharmaceutical’s Proprietary Products was an important contributor to its top-line growth in in 2023. The segment is likely to have exhibited sustained strength in the first quarter as well, especially on the back of high-value products. However, destocking, as well as timing of new HVP device capacity and customer-led HVP upgrade, is likely to have led to a decline in first-quarter sales. Moreover, a weak pharma market and declining sales related to COVID-19 vaccines are expected to have offset growth in other products.
Although Proprietary Products sales are likely to have declined in the first quarter, WST has been witnessing a strong uptake of HVP components, which include Daikyo, NovaPure, and self-injection and administration systems. This trend is projected to have continued in the quarter to be reported.
The company is also expected to have witnessed a gross margin expansion in the aforementioned segment. This is due to a favorable mix of products sold (stemming from high-value products’ [HVP] demand), production efficiencies and higher sales price.
WST’s Contract-Manufactured Products segment is likely to have aided top-line growth due to expanding customer demand for its services during the first quarter.
West Pharmaceuticals’ business is exposed to foreign currency exchange rate fluctuations that are likely to have positively impacted the company’s first-quarter performance. Meanwhile, the company is investing in capacity expansion, especially to support its HVP products. This is likely to have driven cash burn higher during the soon-to-be-reported quarter.
West Pharmaceutical Services, Inc. Price and EPS Surprise
West Pharmaceutical Services, Inc. price-eps-surprise | West Pharmaceutical Services, Inc. Quote
What Our Quantitative Model Suggests
Our proven model predicts an earnings beat for West Pharmaceutical this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: West Pharmaceuticals has an Earnings ESP of +0.35%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks Worth a Look
Here are some other medical stocks worth considering as these too have the right combination of elements to post an earnings beat this reporting cycle.
Edwards Lifesciences EW has an Earnings ESP of +1.02% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s shares have surged 12.7% year to date. EW’s earnings met estimates in the last reported quarter. Edwards Lifesciences has a four-quarter average earnings surprise of 0.80%.
SiBone SIBN has an Earnings ESP of +0.69% and a Zacks Rank of 3 at present.
Its shares have lost 26.6% year to date. SIBN’s earnings beat estimates in the last reported quarter. SiBone has a trailing four-quarter average earnings surprise of 19.98%.
Cardinal Health CAH has an Earnings ESP of +1.11% and a Zacks Rank of 3 at present.
The stock has risen 7.4% year to date. CAH’s earnings beat estimates in the last reported quarter. Cardinal Health has a four-quarter average earnings surprise of 15.64%.
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Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
West Pharmaceutical Services, Inc. (WST) : Free Stock Analysis Report
SiBone (SIBN) : Free Stock Analysis Report
