Insights Ahead: West Pharmaceutical Servs's Quarterly Earnings

West Pharmaceutical Servs WST is preparing to release its quarterly earnings on Thursday, 2025-04-24. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect West Pharmaceutical Servs to report an earnings per share (EPS) of $1.23.

Anticipation surrounds West Pharmaceutical Servs's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

In the previous earnings release, the company beat EPS by $0.09, leading to a 7.84% increase in the share price the following trading session.

Here's a look at West Pharmaceutical Servs's past performance and the resulting price change:

Tracking West Pharmaceutical Servs's Stock Performance

Shares of West Pharmaceutical Servs were trading at $215.13 as of April 22. Over the last 52-week period, shares are down 40.19%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Analyst Views on West Pharmaceutical Servs

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on West Pharmaceutical Servs.

Analysts have provided West Pharmaceutical Servs with 2 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $300.0, suggesting a potential 39.45% upside.

Understanding Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Illumina, Waters and Revvity, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Illumina, with an average 1-year price target of $129.4, suggesting a potential 39.85% downside.
• Analysts currently favor an Neutral trajectory for Waters, with an average 1-year price target of $406.7, suggesting a potential 89.05% upside.
• Analysts currently favor an Outperform trajectory for Revvity, with an average 1-year price target of $128.17, suggesting a potential 40.42% downside.

Comprehensive Peer Analysis Summary

In the peer analysis summary, key metrics for Illumina, Waters and Revvity are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

West Pharmaceutical Servs ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Discovering West Pharmaceutical Servs: A Closer Look

West Pharmaceutical Services is based in Pennsylvania, US, and is a key supplier to firms in the pharmaceutical, biotechnology, and generic drug industries. West sells elastomer-based packaging components (including stoppers, seals, and plungers), non-glass containment solutions, and auto-injectors for injectable drugs, which include large molecule biologics, peptides such as GLP-1 receptor agonists, and small molecule drugs. The company reports in two segments: proprietary products (about 80% of total revenue) and contract-manufactured products (about 20% of total revenue). It generates approximately 55% of its revenue from international markets and 45% from the United States.

West Pharmaceutical Servs's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: West Pharmaceutical Servs's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 2.3%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: West Pharmaceutical Servs's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 17.37% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): West Pharmaceutical Servs's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 4.79%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): West Pharmaceutical Servs's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.56% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: West Pharmaceutical Servs's debt-to-equity ratio is below the industry average. With a ratio of 0.11, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for West Pharmaceutical Servs visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.