West Pharmaceutical Services, Inc. stock research
FY2023 Q2
West Pharmaceutical Services (WST) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased from the prior quarter, while cost of revenue also rose. Gross margin improved slightly but remained below the level from one year earlier, reflecting a weaker relationship between revenue and cost of revenue compared to the same quarter last year.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both increased from the prior quarter, while cost of revenue also rose. Gross margin improved slightly but remained below the level from one year earlier, reflecting a weaker relationship between revenue and cost of revenue compared to the same quarter last year.
- The gross margin improved sequentially as gross profit grew faster than cost of revenue. However, compared to the same quarter last year, cost of revenue increased while gross profit declined, leading to a lower gross margin.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. 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 snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.7%
Gross profit
$291.4M
Revenue
$753.8M
Cost of revenue
$462.4M
Quarter-over-quarter change
+0.8 pts
Year-over-year change
-3.0 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% |
| Jun 30, 2023 | $753.8M | $291.4M | $462.4M | 38.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.8 pts
Year-over-year change
Jun 30, 2022
-3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially as gross profit grew faster than cost of revenue. However, compared to the same quarter last year, cost of revenue increased while gross profit declined, leading to a lower gross margin.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was higher, and gross margin weakened.
Monitor the trajectory of cost of revenue relative to revenue, as it increased year over year while revenue declined.