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Exton, Pennsylvania-based West Pharmaceutical Services, Inc. (WST) designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products. Valued at $19.6 billion by market cap, the company’s technologies include the design and manufacture of packaging components, research and development of drug delivery systems, and contract laboratory services, among others. The leading manufacturer of containment and delivery systems is expected to announce its fiscal third-quarter earnings for 2025 in the near term.
Ahead of the event, analysts expect WST to report a profit of $1.67 per share on a diluted basis, down 9.7% from $1.85 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect WST to report EPS of $6.74, down marginally from $6.75 in fiscal 2024. However, its EPS is expected to rise 11.7% year-over-year to $7.53 in fiscal 2026.
WST stock has underperformed the S&P 500 Index’s ($SPX) 17.2% gains over the past 52 weeks, with shares down 9.6% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund’s (XLV) 5% dip over the same time frame.
WST's underperformance is attributed to several factors, including short-term ordering volatility resulting from customer inventory adjustments, competitive pricing pressure, and macroeconomic headwinds such as fluctuating raw material costs and currency impacts. Regulatory timelines and evolving quality standards also pose execution risks, while normalizing demand for pandemic-related products may impact year-over-year comparisons in specific categories.
On Jul. 24, WST shares surged 22.8% after reporting its Q2 results. Its adjusted EPS of $1.84 exceeded Wall Street expectations of $1.51. The company’s revenue was $766.5 million, beating Wall Street forecasts of $727.3 million. WST expects full-year adjusted EPS in the range of $6.65 to $6.85, and expects revenue in the range of $3 billion to $3.1 billion.
Analysts’ consensus opinion on WST stock is bullish, with a “Strong Buy” rating overall. Out of 15 analysts covering the stock, 11 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and three give a “Hold.” WST’s average analyst price target is $320.50, indicating a potential upside of 19.6% from the current levels.
