West Pharmaceutical Services, Inc. Just Recorded A 27% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, West Pharmaceutical Services, Inc. (NYSE:WST) just kicked off its latest quarterly results with some very strong numbers. The company beat forecasts, with revenue of US$747m, some 5.3% above estimates, and statutory earnings per share (EPS) coming in at US$1.85, 27% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for West Pharmaceutical Services

Taking into account the latest results, the current consensus from West Pharmaceutical Services' ten analysts is for revenues of US$3.06b in 2025. This would reflect a reasonable 6.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 8.5% to US$7.49. In the lead-up to this report, the analysts had been modelling revenues of US$3.07b and earnings per share (EPS) of US$7.74 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 5.5% to US$361, suggesting the revised estimates are not indicative of a weaker long-term future for the business. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on West Pharmaceutical Services, with the most bullish analyst valuing it at US$470 and the most bearish at US$265 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that West Pharmaceutical Services' revenue growth is expected to slow, with the forecast 5.2% annualised growth rate until the end of 2025 being well below the historical 9.8% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.5% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than West Pharmaceutical Services.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for West Pharmaceutical Services going out to 2026, and you can see them free on our platform here..

You can also see our analysis of West Pharmaceutical Services' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.