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What's in Store for West Pharmaceutical's (WST) Q3 Earnings?
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West Pharmaceutical Services, Inc. (WST - Free Report) is scheduled to release third-quarter 2021 results on Oct 28, before the closing bell. In the last reported quarter, the company delivered an earnings surprise of 41.4%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 29.6%.
Q3 Estimates
Currently, the Zacks Consensus Estimate for third-quarter revenues is pegged at $684.7 million, suggesting growth of 24.9% from the year-ago reported figure. The consensus mark for earnings stands at $1.82 per share, indicating an improvement of 58.3% from the prior-year quarter.
Factors to Note
West Pharmaceutical’s Proprietary Products business continues to exhibit sustained strength and has been an important contributor to the company’s top-line growth. In the second quarter of 2021, sales improved significantly on the back of double-digit growth in high-value products (HVP), and strong momentum throughout biologics and pharma market units. The trend is likely to have continued in the third quarter.
Apart from this, the company is likely to have witnessed margin expansion in the aforementioned segment in the to-be-reported quarter, owing to favorable mix of products sold (stemming from the demand in HVP), production efficiencies and higher sales price.
West Pharmaceutical Services, Inc. Price and EPS Surprise
West Pharmaceutical continues to witness strong uptake of HVP components, which include Westar, FluroTec, Envision and NovaPure offerings along with Daikyo’s Crystal Zenith. This momentum is likely to have sustained in the quarter to be reported.
The company has been making significant efforts to retain customers’ faith in the company amid the uncertainty triggered by the pandemic. Apart from ensuring the well-being and safety of team members worldwide, it successfully maintained the continuity of manufacturing and supply of components to customers. This, in turn, might have positively impacted the third-quarter performance.
On the flip side, West Pharmaceuticals’ business is exposed to foreign currency exchange rate fluctuations, which may have weighed on its third-quarter performance.
What Our Quantitative Model Suggests
Per our proven model, a 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. This is the case here as you will see.
Earnings ESP: West Pharmaceuticals has an Earnings ESP of +1.93%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #2.
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 quarter.
Image: Bigstock
What's in Store for West Pharmaceutical's (WST) Q3 Earnings?
West Pharmaceutical Services, Inc. (WST - Free Report) is scheduled to release third-quarter 2021 results on Oct 28, before the closing bell. In the last reported quarter, the company delivered an earnings surprise of 41.4%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 29.6%.
Q3 Estimates
Currently, the Zacks Consensus Estimate for third-quarter revenues is pegged at $684.7 million, suggesting growth of 24.9% from the year-ago reported figure. The consensus mark for earnings stands at $1.82 per share, indicating an improvement of 58.3% from the prior-year quarter.
Factors to Note
West Pharmaceutical’s Proprietary Products business continues to exhibit sustained strength and has been an important contributor to the company’s top-line growth. In the second quarter of 2021, sales improved significantly on the back of double-digit growth in high-value products (HVP), and strong momentum throughout biologics and pharma market units. The trend is likely to have continued in the third quarter.
Apart from this, the company is likely to have witnessed margin expansion in the aforementioned segment in the to-be-reported quarter, owing to favorable mix of products sold (stemming from the demand in HVP), production efficiencies and higher sales price.
West Pharmaceutical Services, Inc. Price and EPS Surprise
West Pharmaceutical Services, Inc. price-eps-surprise | West Pharmaceutical Services, Inc. Quote
West Pharmaceutical continues to witness strong uptake of HVP components, which include Westar, FluroTec, Envision and NovaPure offerings along with Daikyo’s Crystal Zenith. This momentum is likely to have sustained in the quarter to be reported.
The company has been making significant efforts to retain customers’ faith in the company amid the uncertainty triggered by the pandemic. Apart from ensuring the well-being and safety of team members worldwide, it successfully maintained the continuity of manufacturing and supply of components to customers. This, in turn, might have positively impacted the third-quarter performance.
On the flip side, West Pharmaceuticals’ business is exposed to foreign currency exchange rate fluctuations, which may have weighed on its third-quarter performance.
What Our Quantitative Model Suggests
Per our proven model, a 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. This is the case here as you will see.
Earnings ESP: West Pharmaceuticals has an Earnings ESP of +1.93%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #2.
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 quarter.
Insulet Corporation (PODD - Free Report) has an Earnings ESP of +15.79% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Canopy Growth Corporation (CGC - Free Report) has an Earnings ESP of +26.83% and a Zacks Rank of 3.
Cardiovascular Systems, Inc. has an Earnings ESP of +24.59% and a Zacks Rank of 3.