What Happened?

Shares of healthcare products company West Pharmaceutical Services (NYSE:WST) fell 34.9% in the afternoon session after the company reported disappointing fourth-quarter 2024 results: its full-year revenue and earnings guidance fell short of Wall Street's estimates. Adjusted EPS declined slightly y/y, reflecting margin pressures and a less favorable product mix. These factors contributed to the lower-than-expected full-year EPS guidance. 

On the other hand, West Pharmaceutical Services narrowly topped analysts' revenue expectations, signaling resilience in key markets like Biologics and Pharma. However, its forecast suggests continued headwinds, including foreign exchange pressures. Overall, this quarter could have been better.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy West Pharmaceutical Services? Access our full analysis report here, it’s free.

What The Market Is Telling Us

West Pharmaceutical Services’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. Moves this big are rare for West Pharmaceutical Services and indicate this news significantly impacted the market’s perception of the business.

West Pharmaceutical Services is down 37.1% since the beginning of the year, and at $206.18 per share, it is trading 49.5% below its 52-week high of $408.19 from February 2024. Investors who bought $1,000 worth of West Pharmaceutical Services’s shares 5 years ago would now be looking at an investment worth $1,184.

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