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Exton, Pennsylvania-based West Pharmaceutical Services, Inc. (WST) designs and manufactures containment and delivery systems for injectable drugs and healthcare products. With a market cap of $23.5 billion, West Pharmaceutical’s operations span the Americas, Europe, Asia, Africa, and Australia. West Pharmaceutical is expected to announce its Q2 earnings on Thursday, July 25.
Ahead of the event, analysts expect West Pharmaceutical to report a profit of $1.78 per share, down 15.6% from $2.11 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates for the past four quarters. Its EPS for the last reported quarter decreased 21.2% year over year to $1.56. However, it beat the consensus estimate by 20.9%.
Looking ahead to fiscal 2024, analysts expect West Pharmaceutical to report an EPS of $7.76, down 4% from $8.08 in fiscal 2023. However, its fiscal 2025 EPS is projected to grow 18% annually to $9.16.
WST stock is down 8.4% on a YTD basis, significantly underperforming the S&P 500 Index’s ($SPX) 16.7% gains and the S&P 500 Healthcare Sector SPDR’s (XLV) 5.9% returns over the same time frame.
West Pharmaceutical shares slipped 4.6% after the release of Q1 earnings results on April 25 and stayed in the red for the two subsequent trading sessions. Its Q1 adjusted profits fell 22.7% year over year to $150.1 million, while net sales dipped 3% to $695.4 million. Despite these setbacks, as a dividend aristocrat, West Pharma has shown financial resilience with consistent quarterly dividend payouts.
The consensus opinion on West Pharmaceutical is bullish, with a “Strong Buy” rating overall. Out of the eight analysts covering the stock, six suggest a “Strong Buy,” and the remaining two recommend a “Hold” rating. Over the past three months, a new “Strong Buy” recommendation has been added to the consensus.
The mean price target for West Pharmaceutical is $415.14, indicating a potential upside of 28.7% from the current price levels.
On the date of publication, Sristi Jayaswal 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.
