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West Pharmaceutical Services, Inc. (WST) is a leading global manufacturer specializing in the design and production of advanced containment and delivery systems for injectable drugs and healthcare products. Valued at a market cap of $21.6 billion, the company offers solutions that meet the specific quality standards and product specifications required by customers worldwide. The company is expected to unveil its fiscal Q3 earnings results on Thursday, Oct. 24.
Prior to the event, analysts anticipate the medical device company to report a profit of $1.51 per share, down 30.1% from $2.16 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. In the last reported quarter, WST missed the consensus estimate by 14.1%.
For fiscal 2024, analysts expect WST to report EPS of $6.42, down 20.5% from $8.08 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow 17.6% year-over-year to $7.55.
In 2024, WST's shares have decreased 15.8%, lagging behind the S&P 500 Index's ($SPX) 20.6% gain and the Health Care Select Sector SPDR Fund's (XLV) 11.2% increase on a YTD basis.
On Jul. 25, shares of West Pharmaceutical tumbled 14.4% after the company slashed its annual profit and sales forecast, citing reduced demand for medical equipment as biotech customers worked through existing inventories. The revised full-year profit outlook of $6.35 per share–$6.65 per share fell well below analyst expectations, while the company also reported weaker-than-expected Q2 earnings, with an EPS of $1.52 and revenue of $702.1 million, highlighting ongoing issues with customer destocking and lower order volumes.
Analysts' consensus rating on West Pharmaceutical stock is bullish, with a "Strong Buy" rating overall. Among eight analysts covering the stock, opinions include six "Strong Buys" and two "Holds." The average analyst price target for WST stock is $352.50, suggesting a potential upside of 18.9% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
