West Pharmaceutical Services Inc. (WST) stock plummeted around 20% in Thursday's pre-market session after the medical equipment maker's profit and revenue outlook for 2025 fell well short of Wall Street expectations.
The company forecast 2025 adjusted earnings per share of $6 to $6.20, compared to the average analyst estimate of $7.44 according to LSEG data. It also projected full-year revenue of $2.88 billion to $2.91 billion, below the consensus estimate of $3.04 billion.
West Pharma cited two key factors weighing on its guidance - biotech customers reducing inventory levels built up during pandemic-era supply chain disruptions, and headwinds from a strong U.S. dollar impacting overseas revenues. CEO Eric Green said the "impact of destocking continues to moderate" but is still an overhang.