We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
West Pharmaceutical (WST) Q4 Earnings & Revenues Top Estimates
Read MoreHide Full Article
West Pharmaceutical Services, Inc. (WST - Free Report) reported fourth-quarter 2021 adjusted earnings per share (EPS) of $2.04, which beat the Zacks Consensus Estimate of $1.92 by 6.3%. The bottom line surged 52.2% year over year.
For full-year 2021, the company reported an adjusted EPS of $8.58, up 80.3% from the previous year. The figure outpaced the consensus mark by 1.1%.
GAAP EPS in the quarter was $1.93, up 49.6% from the prior-year quarter.
Revenue Details
The company reported revenues of $730.8 million, which increased 26% from the prior-year quarter. The top line outpaced the Zacks Consensus Estimate by 3.1%.
The company reported organic sales growth of 28.3%.
For full-year 2021, the company reported revenues of $2.83 billion, up 31.9% from the prior year. The figure beat the consensus mark by 0.7%.
On a full-year basis, the company reported organic sales growth of 29.4%.
Segment Details
Proprietary Products
Net sales at the segment amounted to $609.3 million, reflecting a year-over-year improvement of 34.2%. Organic sales growth came in at 36.8%. High-value products (components and devices) accounted for more than 74% of segment sales and delivered double-digit organic sales growth. Double-digit organic sales growth across all three market units led to the upside.
West Pharmaceutical Services, Inc. Price, Consensus and EPS Surprise
In the reported quarter, net sales fell 3.6% year over year to $121.5 million. The segment saw a 2.1% decline in organic sales.
Margins
Gross profit in the reported quarter was $300.6 million, up 42.4% year over year. As a percentage of revenues, gross margin in the quarter was 41.1%, up 470 basis points (bps).
Research and development expenses totaled $13.7 million, up 6.2% from the year-ago quarter. Selling, general and administrative expenses amounted to $98 million, up 28.4% on a year-over-year basis.
Operating income was $184 million, up 58.5% year over year. As a percentage of revenues, operating margin in the quarter was 25.2%, up 520 bps.
Financial Position
The company exited the fourth quarter with cash and cash equivalents of $762.6 million, compared with $688 million in the previous quarter.
Cumulative operating cash flow in the fourth quarter amounted to $584 million, compared with $472.5 million in the prior-year period.
2022 Guidance
Net sales for full-year 2022 are projected between $3.05 billion and $3.08 billion. The Zacks Consensus Estimate for the same is currently pegged at $3.12 billion.
It is important to note here that the abovementioned guidance includes an estimated full-year 2022 headwind of $70 million on the basis of present forex rates.
Organic sales growth is estimated to be around 10%.
Adjusted earnings per share for 2022 is anticipated in the band of $9.20 to $9.35. Notably, this range includes an expected headwind of around 21 cents based on present foreign currency exchange rates. The Zacks Consensus Estimate for the same is currently pegged at $9.02 per share.
Wrapping Up
West Pharmaceutical exited fourth-quarter 2021 on a strong note, wherein both earnings and revenues beat the Zacks Consensus Estimate. The company witnessed a strong performance in its Proprietary Products segment. Expansion in both gross and operating margins in the reported quarter buoys optimism.
Per management, solid double-digit organic sales growth in the quarter under review as well as for the full year was driven by higher sales with respect to components in its HVP portfolio.
However, an increase in selling, general and administrative expenses remains a concern. Weakness in Contract-Manufactured Products unit is disappointing.
Zacks Rank
West Pharmaceutical currently carries a Zacks Rank #2 (Buy).
Stocks to Consider
Some other top-ranked stocks in the broader medical space that have announced quarterly results are GlaxoSmithKline plc (GSK - Free Report) , Molina Healthcare, Inc. (MOH - Free Report) and Bio-Rad Laboratories, Inc. (BIO - Free Report) .
GlaxoSmithKline, carrying a Zacks Rank #2, reported fourth-quarter 2021 adjusted earnings of 69 cents per American depositary share (“ADS”), which beat the Zacks Consensus Estimate by 9.5%. Revenues of $13 billion outpaced the consensus mark by 3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GlaxoSmithKline has an estimated long-term growth rate of 5.6%. GSK surpassed earnings estimates in three of the trailing four quarters and matched once, the average surprise being 20.5%.
Molina Healthcare reported fourth-quarter 2021 adjusted EPS of $2.88, which surpassed the Zacks Consensus Estimate by 2.1%. Fourth-quarter revenues of $7.41 billion outpaced the Zacks Consensus Estimate by 3.9%. It currently carries a Zacks Rank #2.
Molina Healthcare has an estimated long-term growth rate of 18.8%. MOH surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 5%.
Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. Fourth-quarter revenues of $732.8 million outpaced the Zacks Consensus Estimate by 0.5%. It currently has a Zacks Rank #2.
Bio-Rad has an earnings yield of 2.3%, which compares favorably with the industry’s negative yield. BIO surpassed earnings estimates in each of the trailing four quarters, the average surprise being 66.9%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
West Pharmaceutical (WST) Q4 Earnings & Revenues Top Estimates
West Pharmaceutical Services, Inc. (WST - Free Report) reported fourth-quarter 2021 adjusted earnings per share (EPS) of $2.04, which beat the Zacks Consensus Estimate of $1.92 by 6.3%. The bottom line surged 52.2% year over year.
For full-year 2021, the company reported an adjusted EPS of $8.58, up 80.3% from the previous year. The figure outpaced the consensus mark by 1.1%.
GAAP EPS in the quarter was $1.93, up 49.6% from the prior-year quarter.
Revenue Details
The company reported revenues of $730.8 million, which increased 26% from the prior-year quarter. The top line outpaced the Zacks Consensus Estimate by 3.1%.
The company reported organic sales growth of 28.3%.
For full-year 2021, the company reported revenues of $2.83 billion, up 31.9% from the prior year. The figure beat the consensus mark by 0.7%.
On a full-year basis, the company reported organic sales growth of 29.4%.
Segment Details
Proprietary Products
Net sales at the segment amounted to $609.3 million, reflecting a year-over-year improvement of 34.2%. Organic sales growth came in at 36.8%. High-value products (components and devices) accounted for more than 74% of segment sales and delivered double-digit organic sales growth. Double-digit organic sales growth across all three market units led to the upside.
West Pharmaceutical Services, Inc. Price, Consensus and EPS Surprise
West Pharmaceutical Services, Inc. price-consensus-eps-surprise-chart | West Pharmaceutical Services, Inc. Quote
Contract-Manufactured Products
In the reported quarter, net sales fell 3.6% year over year to $121.5 million. The segment saw a 2.1% decline in organic sales.
Margins
Gross profit in the reported quarter was $300.6 million, up 42.4% year over year. As a percentage of revenues, gross margin in the quarter was 41.1%, up 470 basis points (bps).
Research and development expenses totaled $13.7 million, up 6.2% from the year-ago quarter. Selling, general and administrative expenses amounted to $98 million, up 28.4% on a year-over-year basis.
Operating income was $184 million, up 58.5% year over year. As a percentage of revenues, operating margin in the quarter was 25.2%, up 520 bps.
Financial Position
The company exited the fourth quarter with cash and cash equivalents of $762.6 million, compared with $688 million in the previous quarter.
Cumulative operating cash flow in the fourth quarter amounted to $584 million, compared with $472.5 million in the prior-year period.
2022 Guidance
Net sales for full-year 2022 are projected between $3.05 billion and $3.08 billion. The Zacks Consensus Estimate for the same is currently pegged at $3.12 billion.
It is important to note here that the abovementioned guidance includes an estimated full-year 2022 headwind of $70 million on the basis of present forex rates.
Organic sales growth is estimated to be around 10%.
Adjusted earnings per share for 2022 is anticipated in the band of $9.20 to $9.35. Notably, this range includes an expected headwind of around 21 cents based on present foreign currency exchange rates. The Zacks Consensus Estimate for the same is currently pegged at $9.02 per share.
Wrapping Up
West Pharmaceutical exited fourth-quarter 2021 on a strong note, wherein both earnings and revenues beat the Zacks Consensus Estimate. The company witnessed a strong performance in its Proprietary Products segment. Expansion in both gross and operating margins in the reported quarter buoys optimism.
Per management, solid double-digit organic sales growth in the quarter under review as well as for the full year was driven by higher sales with respect to components in its HVP portfolio.
However, an increase in selling, general and administrative expenses remains a concern. Weakness in Contract-Manufactured Products unit is disappointing.
Zacks Rank
West Pharmaceutical currently carries a Zacks Rank #2 (Buy).
Stocks to Consider
Some other top-ranked stocks in the broader medical space that have announced quarterly results are GlaxoSmithKline plc (GSK - Free Report) , Molina Healthcare, Inc. (MOH - Free Report) and Bio-Rad Laboratories, Inc. (BIO - Free Report) .
GlaxoSmithKline, carrying a Zacks Rank #2, reported fourth-quarter 2021 adjusted earnings of 69 cents per American depositary share (“ADS”), which beat the Zacks Consensus Estimate by 9.5%. Revenues of $13 billion outpaced the consensus mark by 3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GlaxoSmithKline has an estimated long-term growth rate of 5.6%. GSK surpassed earnings estimates in three of the trailing four quarters and matched once, the average surprise being 20.5%.
Molina Healthcare reported fourth-quarter 2021 adjusted EPS of $2.88, which surpassed the Zacks Consensus Estimate by 2.1%. Fourth-quarter revenues of $7.41 billion outpaced the Zacks Consensus Estimate by 3.9%. It currently carries a Zacks Rank #2.
Molina Healthcare has an estimated long-term growth rate of 18.8%. MOH surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 5%.
Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. Fourth-quarter revenues of $732.8 million outpaced the Zacks Consensus Estimate by 0.5%. It currently has a Zacks Rank #2.
Bio-Rad has an earnings yield of 2.3%, which compares favorably with the industry’s negative yield. BIO surpassed earnings estimates in each of the trailing four quarters, the average surprise being 66.9%.