West Pharmaceutical Services, Inc. stock research
FY2023 Q1
West Pharmaceutical Services (WST) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared to the preceding quarter, while cost of revenue was slightly lower, leading to an improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was higher, and gross margin weakened.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the preceding quarter, while cost of revenue was slightly lower, leading to an improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was higher, and gross margin weakened.
- The strongest observable margin driver is the sequential increase in gross profit relative to revenue, as gross margin improved from the prior quarter. This improvement occurred despite a lower revenue base compared to the year-ago quarter.
- Gross margin improved from the immediately preceding quarter but weakened compared to the same quarter one year earlier. Revenue and gross profit were higher than the prior quarter and lower than the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.9%
Gross profit
$271.3M
Revenue
$716.6M
Cost of revenue
$445.3M
Quarter-over-quarter change
n/a
Year-over-year change
-1.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $716.6M | $271.3M | $445.3M | 37.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential increase in gross profit relative to revenue, as gross margin improved from the prior quarter. This improvement occurred despite a lower revenue base compared to the year-ago quarter.
Gross margin improved from the immediately preceding quarter but weakened compared to the same quarter one year earlier. Revenue and gross profit were higher than the prior quarter and lower than the year-ago quarter.
Monitor cost of revenue trends relative to revenue, as cost of revenue was higher year over year while revenue declined.