West Pharmaceutical Services Earnings: Everything You Must Know Now

West Pharmaceutical Services, Inc. (NYSE:WST) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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West Pharmaceutical Services, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 4.82% to $0.87 in the quarter versus EPS of $0.83 in the year-earlier quarter.

Revenue: Rose 7.3% to $339.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: West Pharmaceutical Services, Inc. reported adjusted EPS income of $0.87 per share. By that measure, the company beat the mean analyst estimate of $0.86. It missed the average revenue estimate of $344.2 million.

Quoting Management: “From an operating viewpoint, we improved on last year’s record first quarter, again demonstrating the impact of successfully executing our strategy to profitably grow sales by adding value to each unit or dose,” said Donald E. Morel Jr., PhD, West’s Chairman and Chief Executive Officer. “Higher sales of value-added packaging components continued to generate most of the growth, building on the strong performance of that category in 2012. Proprietary Delivery Systems product sales improved over the slow start in last year’s first quarter, mostly at lower margins due to the relatively small scale of the operations involved. SG&A grew on planned, ongoing investments in information technologies and a multi-year initiative to enhance global manufacturing performance, and the share price-driven increase in compensation costs.”

Key Stats (on next page)…

Revenue increased 5.57% from $321.5 million in the previous quarter. EPS increased 42.62% from $0.61 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.77 to a profit $0.83. For the current year, the average estimate has moved up from a profit of $3.00 to a profit of $3.13 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)