Healthcare products company West Pharmaceutical Services (NYSE: WST) will be announcing earnings results this Thursday morning. Here’s what you need to know.
West Pharmaceutical Services beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $698 million, flat year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and full-year revenue guidance beating analysts’ expectations.
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 3.4% year on year to $725.9 million, a reversal from the 6.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.51 per share.
The majority of analysts covering the company have 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 life sciences tools & services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Medpace delivered year-on-year revenue growth of 14.2%, beating analysts’ expectations by 11.3%, and IQVIA reported revenues up 5.3%, topping estimates by 1.2%. Medpace traded up 54.6% following the results.
Read our full analysis of Medpace’s results here and IQVIA’s results here.
Investors in the life sciences tools & services segment have had steady hands going into earnings, with share prices flat over the last month. West Pharmaceutical Services is up 1.1% during the same time and is heading into earnings with an average analyst price target of $278.84 (compared to the current share price of $219).
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