West Pharmaceutical Services (NYSE:WST) Issues Earnings Results

Key Points

• West Pharmaceutical Services reported a quarterly earnings per share (EPS) of $1.84, surpassing analysts' expectations of $1.51, with a year-over-year revenue increase of 9.2% to $766.50 million.
• The company announced an increase in its quarterly dividend from $0.21 to $0.22 per share, reflecting a dividend yield of 0.33% and a payout ratio of 12.57%.
• Analysts have upgraded West Pharmaceutical Services' stock ratings, with a consensus average rating of "Moderate Buy" and a target price of $320.71.

West Pharmaceutical Services (NYSE:WST - Get Free Report) posted its earnings results on Thursday. The medical instruments supplier reported $1.84 EPS for the quarter, topping analysts' consensus estimates of $1.51 by $0.33, Zacks reports. West Pharmaceutical Services had a net margin of 16.48% and a return on equity of 18.81%. The business had revenue of $766.50 million during the quarter, compared to the consensus estimate of $725.11 million. During the same quarter in the previous year, the firm posted $1.52 EPS. The firm's revenue was up 9.2% on a year-over-year basis. West Pharmaceutical Services updated its FY 2025 guidance to 6.650-6.850 EPS.

West Pharmaceutical Services Price Performance

Shares of NYSE:WST traded down $15.78 during trading on Friday, reaching $263.32. 1,493,189 shares of the company's stock traded hands, compared to its average volume of 777,491. West Pharmaceutical Services has a fifty-two week low of $187.43 and a fifty-two week high of $352.33. The company has a quick ratio of 2.03, a current ratio of 2.77 and a debt-to-equity ratio of 0.08. The firm has a market cap of $18.92 billion, a PE ratio of 39.42, a P/E/G ratio of 6.28 and a beta of 1.09. The company has a 50-day simple moving average of $220.56 and a 200-day simple moving average of $239.22.

West Pharmaceutical Services Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 19th. Investors of record on Wednesday, November 12th will be given a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a yield of 0.33%. The ex-dividend date of this dividend is Wednesday, November 12th. This is a positive change from West Pharmaceutical Services's previous quarterly dividend of $0.21. West Pharmaceutical Services's dividend payout ratio (DPR) is currently 12.57%.

Institutional Investors Weigh In On West Pharmaceutical Services

Institutional investors have recently added to or reduced their stakes in the stock. Acadian Asset Management LLC boosted its holdings in West Pharmaceutical Services by 14.1% in the 1st quarter. Acadian Asset Management LLC now owns 1,271 shares of the medical instruments supplier's stock worth $284,000 after buying an additional 157 shares during the last quarter. Intech Investment Management LLC boosted its holdings in West Pharmaceutical Services by 27.7% in the 1st quarter. Intech Investment Management LLC now owns 6,020 shares of the medical instruments supplier's stock worth $1,348,000 after buying an additional 1,307 shares during the last quarter. Finally, Empowered Funds LLC boosted its stake in shares of West Pharmaceutical Services by 16.1% in the first quarter. Empowered Funds LLC now owns 1,611 shares of the medical instruments supplier's stock worth $361,000 after acquiring an additional 224 shares during the last quarter. Institutional investors and hedge funds own 93.90% of the company's stock.

Analyst Ratings Changes

WST has been the subject of a number of recent research reports. Stephens upgraded West Pharmaceutical Services to a "strong-buy" rating in a research note on Monday, April 21st. Evercore ISI increased their target price on West Pharmaceutical Services from $275.00 to $350.00 and gave the company an "outperform" rating in a research report on Friday. UBS Group increased their price objective on shares of West Pharmaceutical Services from $285.00 to $320.00 and gave the company a "buy" rating in a research report on Friday. Wall Street Zen upgraded shares of West Pharmaceutical Services from a "hold" rating to a "buy" rating in a research report on Saturday. Finally, Citigroup reaffirmed a "buy" rating on shares of West Pharmaceutical Services in a report on Thursday, May 22nd. Two investment analysts have rated the stock with a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $320.71.

About West Pharmaceutical Services

West Pharmaceutical Services, Inc designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Proprietary Products and Contract-Manufactured Products.

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