West Pharmaceutical forecasts 2025 results below expectations, shares drop

West Pharmaceutical Services

13/02/2025 12:57

Feb 13 (Reuters) - West Pharmaceutical Services  WST.N 
forecast full-year profit and revenue below Wall Street
estimates on Thursday due to a strong dollar and as the medical
equipment maker's clients reduce inventory levels, sending its
shares down 18% premarket.  
    It forecast 2025 revenue of between $2.88 billion and $2.91
billion, with the midpoint below analysts' estimates of $3.04
billion, according to data compiled by LSEG.
    The company expects 2025 adjusted earnings per share of
between $6 and $6.20, compared with estimates of $7.44.
    "The impact of destocking continues to moderate," CEO Eric
Green said in a statement. 
    West Pharma's revenues and order books have been under
pressure from biotech clients depleting inventories they had
built up during pandemic-era supply chain disruptions.
    However, the company's fourth-quarter profit and revenue
both came in above expectations, due to rising demand in its
business that makes cartridges and syringes used to manufacture
injectable therapies.
    Revenue in the proprietary products unit came in at $613.9
million, above analysts' average estimates of $597.8 million.
The segment makes up more than half of the company's total
revenues.
        The company reported total revenue of $748.8 million for
the fourth quarter ended December 31, compared with estimates of
$740.5 million
    On an adjusted basis, the company posted a profit of $1.82
per share, compared with estimates of $1.72.
  

 (Reporting by Kamal Choudhury in Bengaluru; Editing by Devika
Syamnath)
 ((Kamal.Choudhury@thomsonreuters.com;))