West Pharmaceutical Services Misses on Revenues but Beats on EPS

West Pharmaceutical Services (NYS: WST) reported earnings on Aug. 1. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.)

Looking ahead
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.

Investor sentiment

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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The article West Pharmaceutical Services Misses on Revenues but Beats on EPS originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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