WST Earnings Prediction
The chart below shows how WST performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WST sees a +12.44% change in stock price 10 days leading up to the earnings, and a +4.08% change 10 days following the report. On the earnings day itself, the stock moves by -6.99%. This data can give you a slight idea of what to expect for the next quarter's release.
WST Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
746.90M
-0.07%
6.38%
Gross Margin
35.44%
-8.12%
8.18%
Operating Margin
21.94%
-11.57%
19.89%
Net Margin
18.21%
-15.62%
14.89%
EPS
1.85
-13.55%
22.52%
No Data Available
WST Earnings Analysis
West Pharmaceutical Services, Inc. Corporation (WST.N) Earnings Conference Call
Positive
Full-Year Sales Guidance Increase: 1. Increased Full-Year Guidance: West Pharmaceutical raised its full-year 2024 net sales guidance to a range of $2.875 billion to $2.905 billion, reflecting a positive outlook driven by foreign exchange impacts.
Adjusted EPS Guidance Increase: 2. Adjusted EPS Improvement: The company increased its adjusted diluted EPS guidance for 2024 to a range of $6.55 to $6.75, up from the previous range of $6.35 to $6.65, indicating stronger operational performance.
Q3 Revenue Success: 3. Strong Revenue Performance: Q3 2024 revenues reached $746.9 million, demonstrating solid execution and close collaboration with customers, contributing to a strong quarter performance.
Cash Flow Performance: 4. Positive Cash Flow Metrics: Operating cash flow for the nine months ended September 30, 2024, was $463.3 million, showcasing the company's ability to generate cash despite a decrease compared to the previous year.
Product Launch Success: 5. Successful Product Launches: The ramp-up of production for HVP delivery devices began in Q3, driven by capital investment and improved utilization, with expectations for continued growth into Q4.
Negative
Sales Decline Analysis: 1. Organic Sales Decline: West Pharmaceutical reported a 0.5% organic sales decline in Q3 2024, indicating a continued struggle with customer de-stocking and lower demand for certain products.
Operating Profit Margin Decline: 2. Decreased Operating Profit Margin: The adjusted operating profit margin fell to 21.5%, a decrease of 270 basis points compared to Q3 2023, reflecting challenges in maintaining profitability amid changing product mix and lower volumes.
EPS Decline Impact: 3. Significant EPS Decline: Adjusted diluted EPS decreased by 14.4% year-over-year, highlighting the impact of reduced sales and operational challenges on earnings performance.
Cash Flow Decline: 4. Cash Flow Reduction: Operating cash flow for the nine months ended September 30, 2024, decreased by $74.1 million, or 13.8%, compared to the same period last year, primarily due to declining operating results.
Decreased Cash Reserves: 5. Lower Cash Balance: The cash balance at September 30, 2024, was $490.9 million, down $363 million from December 2023, largely due to significant share repurchases and capital expenditures.
WST FAQs
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WST Earning Call Sentiment
West Pharmaceutical Services, Inc. (WST) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
WST.N
3.56%Positive
The earnings call summary indicates negative sentiment due to declining sales, margin pressure, and lowered guidance. The Q&A section highlights ongoing destocking issues, margin normalization uncertainty, and management's evasive responses, further contributing to a negative outlook. Despite share repurchases, the financial performance is weak, with declining EPS and cash flow, and increased expenses for capacity expansion. The overall sentiment is negative, with potential short-term stock price decline expected.
