One of the biggest stories of last week was how West Pharmaceutical Services, Inc. (NYSE:WST) shares plunged 33% in the week since its latest full-year results, closing yesterday at US$215. West Pharmaceutical Services reported US$2.9b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$6.69 beat expectations, being 3.9% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on West Pharmaceutical Services after the latest results.

View our latest analysis for West Pharmaceutical Services

Following last week's earnings report, West Pharmaceutical Services' twelve analysts are forecasting 2025 revenues to be US$2.89b, approximately in line with the last 12 months. Statutory earnings per share are expected to decline 12% to US$5.99 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$3.04b and earnings per share (EPS) of US$7.32 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 20% to US$306. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values West Pharmaceutical Services at US$393 per share, while the most bearish prices it at US$250. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.09% by the end of 2025. This indicates a significant reduction from annual growth of 8.5% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - West Pharmaceutical Services is expected to lag the wider industry.

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 negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of West Pharmaceutical Services' future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for West Pharmaceutical Services going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for West Pharmaceutical Services you should be aware of.

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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.