West Pharmaceutical (WST) stock plummeted 24.11% on Thursday morning's pre-market session, following the company's weaker-than-expected guidance for 2025 due to factors like biotech customers reducing pandemic-era inventories and headwinds from a strong U.S. dollar.
The medical equipment maker forecast 2025 adjusted earnings per share of $6 to $6.20, well below analysts' average estimate of $7.44. It also projected full-year revenue between $2.88 billion and $2.91 billion, missing expectations of $3.04 billion.
West Pharma cited the ongoing impact of destocking by its biotech clients, who had built up inventories during pandemic supply chain disruptions. The company's CEO Eric Green noted that "the impact of destocking continues to moderate" but remains a challenge. A strong U.S. dollar also weighed on the outlook by impacting overseas revenues.