West Pharmaceutical Services earnings: what to look for from WST

Healthcare products company West Pharmaceutical Services (NYSE:WST) will be announcing earnings results this Thursday morning. Here’s what to expect.

West Pharmaceutical Services beat analysts’ revenue expectations last quarter, reporting revenues of $872.3 million, up 13.8% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates.

Is West Pharmaceutical Services a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting West Pharmaceutical Services’s revenue to grow 2.8% year on year, slowing from the 7.7% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. West Pharmaceutical Services has a history of exceeding Wall Street’s expectations.

Looking at West Pharmaceutical Services’s peers in the drug development inputs & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Repligen delivered year-on-year revenue growth of 10.9%, beating analysts’ expectations by 1.1%, and Medpace reported revenues up 8.5%, in line with consensus estimates. Medpace traded down 1.3% following the results.

Read our full analysis of Repligen’s results here and Medpace’s results here.

There has been positive sentiment among investors in the drug development inputs & services segment, with share prices up 3.6% on average over the last month. West Pharmaceutical Services is up 5.8% during the same time and is heading into earnings with an average analyst price target of $416.40 (compared to the current share price of $397.50).

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