West Pharmaceutical Services, Inc. stock research
FY2023 Q4
West Pharmaceutical Services (WST) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit declined sequentially, while cost of revenue also decreased, resulting in a lower gross margin. Compared to the same quarter last year, revenue and gross profit increased, and gross margin improved.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit declined sequentially, while cost of revenue also decreased, resulting in a lower gross margin. Compared to the same quarter last year, revenue and gross profit increased, and gross margin improved.
- The sequential decline in gross margin was driven by a larger proportional decrease in revenue relative to cost of revenue.
- Sequentially, gross margin weakened from the prior quarter. Year-over-year, gross margin improved from the same quarter last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.0%
Gross profit
$278.2M
Revenue
$732.0M
Cost of revenue
$453.8M
Quarter-over-quarter change
-0.6 pts
Year-over-year change
+1.0 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% |
| Sep 30, 2023 | $747.4M | $288.3M | $459.1M | 38.6% |
| Dec 31, 2023 | $732.0M | $278.2M | $453.8M | 38.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.6 pts
Year-over-year change
Dec 31, 2022
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential decline in gross margin was driven by a larger proportional decrease in revenue relative to cost of revenue.
Sequentially, gross margin weakened from the prior quarter. Year-over-year, gross margin improved from the same quarter last year.
Monitor the relationship between revenue and cost of revenue in future quarters, as changes in their relative proportions directly affect gross margin.