What's in Store for West Pharmaceutical (WST) in Q4 Earnings?
West Pharmaceutical Services WST is scheduled to release fourth-quarter 2023 results on Feb 15, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 16.13%. WST’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 17.56%.
Q4 Estimates
Currently, the Zacks Consensus Estimate for revenues is pegged at $738.9 million, indicating an improvement of 4.7% from the year-ago period’s level. The consensus mark for earnings is pinned at $1.78 per share, indicating an improvement of 0.6% year over year.
Factors to Note
West Pharmaceutical’s Proprietary Products was an important contributor to its top-line growth in the first nine months of 2023. The segment is likely to have exhibited sustained strength in the fourth quarter as well.
Apart from this, the company is also expected to have witnessed a 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 has been witnessing a strong uptake of HVP components, which include Westar, Envision and NovaPure offerings. This trend is likely to have continued in the quarter to be reported.
The top line was driven by demand growth and a strong order book during the third quarter. The trend is likely to have continued in the soon-to-be-reported quarter. The company’s raised guidance for 2023 earnings and revenues is likely to be reflected in the fourth-quarter results.
West Pharmaceuticals’ business is exposed to foreign currency exchange rate fluctuations that is likely to have positively impacted the company’s fourth-quarter performance. However, it expects COVID-related sales to decrease further after declining year over year in the past two quarters.
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
Per our proven model, 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. That is not the case here, as you will see below.
Earnings ESP: West Pharmaceuticals has an Earnings ESP of 0.00%. 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.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to come up with an earnings beat this reporting cycle.
Dentsply Sirona XRAY has an Earnings ESP of +6.43% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock fell 9.1% in the past year. XRAY’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 20.65%.
Merit Medical Systems MMSI has an Earnings ESP of +1.30% and a Zacks Rank of 2 at present.
The stock has risen 12.9% in the past year. MMSI’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 14.41%.
Glaukos Corporation GKOS has an Earnings ESP of +1.19% and a Zacks Rank of 3 at present.
The stock has risen 91.7% in the past year. GKOS’ earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 5.72%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report
Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report
West Pharmaceutical Services, Inc. (WST) : Free Stock Analysis Report
Glaukos Corporation (GKOS) : Free Stock Analysis Report
