West Pharmaceutical Services, Inc. stock research
FY2024 Q3
West Pharmaceutical Services (WST) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was essentially unchanged compared to the same quarter last year, while gross profit and gross margin were lower. Sequentially, revenue increased and gross margin improved, as cost of revenue rose less than revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue was essentially unchanged compared to the same quarter last year, while gross profit and gross margin were lower. Sequentially, revenue increased and gross margin improved, as cost of revenue rose less than revenue.
- The sequential improvement in gross margin was the most notable change, driven by a smaller increase in cost of revenue relative to the increase in revenue.
- Compared to the prior quarter, gross margin improved. Compared to the same quarter last year, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.4%
Gross profit
$264.7M
Revenue
$746.9M
Cost of revenue
$482.2M
Quarter-over-quarter change
+2.7 pts
Year-over-year change
-3.1 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $732.0M | $278.2M | $453.8M | 38.0% |
| Mar 31, 2024 | $695.4M | $230.2M | $465.2M | 33.1% |
| Jun 30, 2024 | $702.1M | $230.0M | $472.1M | 32.8% |
| Sep 30, 2024 | $746.9M | $264.7M | $482.2M | 35.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+2.7 pts
Year-over-year change
Sep 30, 2023
-3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was the most notable change, driven by a smaller increase in cost of revenue relative to the increase in revenue.
Compared to the prior quarter, gross margin improved. Compared to the same quarter last year, gross margin weakened.
Monitor capital expenditure trends as they relate to additional manufacturing capacity and potential future cost implications.