West Pharmaceutical Services (NYSE:WST) Shares Gap Up After Strong Earnings

Key Points

• West Pharmaceutical Services shares surged 11.9% after the company reported Q3 earnings of $1.96 EPS, exceeding analysts' expectations of $1.67 EPS.
• The company's quarterly revenue reached $804.60 million, surpassing the consensus estimate of $788.42 million, marking a year-over-year increase of 7.7%.
• Analysts have varying ratings on the stock, with an average rating of "Moderate Buy" and a consensus target price of $321.89.

West Pharmaceutical Services, Inc. (NYSE:WST - Get Free Report) shares gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $277.00, but opened at $301.06. West Pharmaceutical Services shares last traded at $309.00, with a volume of 239,894 shares traded.

The medical instruments supplier reported $1.96 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.67 by $0.29. The firm had revenue of $804.60 million for the quarter, compared to the consensus estimate of $788.42 million. West Pharmaceutical Services had a return on equity of 18.43% and a net margin of 16.48%.The company's revenue for the quarter was up 7.7% on a year-over-year basis. During the same period last year, the business posted $1.85 EPS. West Pharmaceutical Services has set its FY 2025 guidance at 7.060-7.110 EPS.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Redburn Partners set a $311.00 price target on West Pharmaceutical Services in a research note on Monday, September 15th. Rothschild & Co Redburn began coverage on West Pharmaceutical Services in a research report on Monday, September 15th. They set a "buy" rating and a $311.00 target price on the stock. Barclays lifted their target price on West Pharmaceutical Services from $260.00 to $275.00 and gave the company an "equal weight" rating in a research report on Thursday, October 2nd. Zacks Research downgraded West Pharmaceutical Services from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, September 23rd. Finally, Wall Street Zen raised West Pharmaceutical Services from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $321.89.

Hedge Funds Weigh In On West Pharmaceutical Services

Several institutional investors have recently added to or reduced their stakes in WST. Vanguard Group Inc. increased its stake in West Pharmaceutical Services by 0.9% during the second quarter. Vanguard Group Inc. now owns 9,316,804 shares of the medical instruments supplier's stock worth $2,038,517,000 after acquiring an additional 85,083 shares during the last quarter. State Street Corp increased its stake in West Pharmaceutical Services by 2.1% during the second quarter. State Street Corp now owns 3,271,866 shares of the medical instruments supplier's stock worth $715,884,000 after acquiring an additional 68,330 shares during the last quarter. Brown Advisory Inc. increased its stake in West Pharmaceutical Services by 28.1% during the first quarter. Brown Advisory Inc. now owns 3,268,478 shares of the medical instruments supplier's stock worth $731,747,000 after acquiring an additional 716,442 shares during the last quarter. Artisan Partners Limited Partnership increased its stake in West Pharmaceutical Services by 3.3% during the second quarter. Artisan Partners Limited Partnership now owns 2,267,319 shares of the medical instruments supplier's stock worth $496,089,000 after acquiring an additional 71,836 shares during the last quarter. Finally, Durable Capital Partners LP increased its stake in West Pharmaceutical Services by 146.8% during the first quarter. Durable Capital Partners LP now owns 1,573,119 shares of the medical instruments supplier's stock worth $352,190,000 after acquiring an additional 935,721 shares during the last quarter. Hedge funds and other institutional investors own 93.90% of the company's stock.

West Pharmaceutical Services Stock Up 11.9%

The company has a 50 day simple moving average of $257.04 and a two-hundred day simple moving average of $232.65. The company has a quick ratio of 2.08, a current ratio of 2.78 and a debt-to-equity ratio of 0.07. The company has a market capitalization of $22.30 billion, a P/E ratio of 46.51, a PEG ratio of 4.90 and a beta of 1.07.

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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