West Pharmaceutical Services WST is scheduled to release second-quarter 2026 results on July 23, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 26.79%. WST’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.37%.
Q2 Estimates
Per management, the company expects first-quarter revenues to be in the range of $770-$790 million, implying 5-7% organic sales growth. Also, adjusted diluted earnings per share (EPS) are expected to be in the range of $1.65-$1.70.
Currently, the Zacks Consensus Estimate for revenues is pegged at $836.8 million, indicating growth of 9.2% year over year. The consensus mark for earnings is pinned at $2.08 per share, indicating an improvement of 13%.
Our model estimates total revenues to be $832.7 million, implying a 9.8% organic improvement year over year. The adjusted EPS is estimated to be $2.06. While the Proprietary Products segment sales are anticipated to be $680.3 million (organic growth of 11%), West Vantage (formerly Contract Manufacturing) segmental sales are likely to be $152.4 million (organic growth of 5.1%). Operating profit for the Proprietary Products segment is expected to increase 15.8%, while that for the West Vantage segment is projected to decline 4%.
West Pharmaceutical Services, Inc. Price and EPS Surprise
West Pharmaceutical Services, Inc. price-eps-surprise | West Pharmaceutical Services, Inc. Quote
Factors to Note
West Pharmaceutical Services is expected to have delivered another solid quarterly performance, supported by sustained demand for high-value products (HVP), continued strength in biologics and GLP-1-related components, and favorable product mix. The company's recent commentary suggests that demand across both GLP-1 and non-GLP-1 markets might have remained healthy, aided by increasing biologics adoption, biosimilar launches and Annex 1-related conversions. Management also highlighted improving manufacturing productivity and capacity utilization across its European facilities, which likely supported higher output and operating leverage. Elevated oil, freight and commodity costs may have created some margin headwinds, although pricing actions, operational efficiencies and favorable product mix are expected to have largely offset these pressures.
Within the Proprietary Products segment, HVP Components are likely to have remained the primary growth engine. Demand from GLP-1 therapies should have stayed robust, supported by expanding patient adoption, broader reimbursement, new indications and continued injectable market growth. At the same time, non-GLP-1 HVP Components are expected to have benefited from strong biologics demand, increasing NovaPure adoption, biosimilar commercialization and continued customer migration toward higher-value products under Annex 1 compliance initiatives.
HVP Delivery Devices are also expected to have posted healthy growth, supported by SelfDose and Crystal Zenith, while SmartDose volumes likely remained elevated ahead of the planned divestiture. Standard Products, however, may have recorded only modest growth as ongoing customer conversions toward HVP Components continued to weigh on legacy product volumes.
West Vantage is expected to have delivered steady growth, supported by increasing demand for drug-handling services and self-injection devices used in obesity and diabetes therapies. However, the ongoing transition from the continuous glucose monitoring contract may have partially offset the benefit.
Earnings are likely to have benefited from favorable HVP mix, manufacturing efficiencies and pricing discipline. Continued operating leverage and disciplined capital spending should have supported earnings growth despite inflationary cost pressures, positioning the company for another quarter of healthy margin expansion and solid EPS performance.
Earnings Beat Likely
Our proven model predicts an earnings beat for WST this earnings season. 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, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (earnings of $2.09 per share) and the Zacks Consensus Estimate, is +0.66%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Worth a Look
Here are some other medical product stocks worth considering, as these too have the right combination of elements to post an earnings beat this reporting cycle.
Henry Schein HSIC has an Earnings ESP of +0.41% and a Zacks Rank #2 at present.
HSIC’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 3.74%. The Zacks Consensus Estimate for HSIC’s second-quarter EPS indicates an improvement of 10.9% from the year-ago reported figure.
Alcon ALC has an Earnings ESP of +3.13% and a Zacks Rank of 2 at present. The company is set to release second-quarter 2026 results on August 10.
ALC’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 3.66%. The Zacks Consensus Estimate for ALC’s second-quarter EPS implies an improvement of 1.3% from the year-ago reported figure.
Cardinal Health CAH has an Earnings ESP of +1.24% and a Zacks Rank of 2 at present. The company is slated to release fourth-quarter fiscal 2026 results on Aug 11.
CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%. The Zacks Consensus Estimate for CAH’s fourth-quarter EPS reflects a gain 16.4% from the year-ago reported figure.
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West Pharmaceutical Services, Inc. (WST): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).