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EXTON, Pa. - West Pharmaceutical Services, Inc. (NYSE:WST), currently trading above its InvestingPro Fair Value, reported Thursday that its second-quarter net sales rose 9.2% to $766.5 million, exceeding company expectations primarily due to solid growth in high-value product components. The company maintains strong financial health with a current ratio of 2.77 and operates with moderate debt levels.
The pharmaceutical packaging and delivery systems provider posted diluted earnings per share of $1.82 for the quarter, up from $1.51 in the same period last year. Adjusted diluted EPS increased to $1.84 from $1.52. According to InvestingPro data, three analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in the company’s prospects. InvestingPro subscribers have access to 13 additional key insights about WST’s performance and outlook.
West’s Proprietary Products segment, which accounts for approximately 81% of total sales, grew by 10.7% to $619.8 million. The growth was driven by an 11.3% increase in high-value product components, particularly in Westar and NovaChoice products. The segment’s performance benefited from strong GLP-1 elastomer growth and ongoing momentum in high-value product conversion related to Annex 1 projects.
The Contract-Manufactured Products segment increased by 3.0% to $146.7 million, supported by higher sales of self-injection devices for obesity and diabetes treatments.
"I am pleased to report that we exceeded our expectations for the second quarter driven by solid growth in HVP components," said Eric M. Green, President, Chief Executive Officer and Chair of the Board, in the press release.
Following the strong quarterly performance, West raised its full-year 2025 guidance. The company now expects net sales between $3.040 billion and $3.060 billion, up from previous guidance of $2.945 billion to $2.975 billion. The adjusted diluted EPS forecast was increased to a range of $6.65 to $6.85, compared to the previous range of $6.15 to $6.35.
West’s Board of Directors approved a fourth-quarter 2025 dividend of $0.22 per share, payable on November 19, 2025, to shareholders of record as of November 12, 2025.
The company maintained its capital spending guidance at $275 million for the full year.
In other recent news, West Pharmaceutical Services Inc. reported strong financial results for the first quarter of 2025, with earnings per share (EPS) of $1.45, surpassing the forecasted $1.23. The company also reported revenue of $698 million, exceeding the anticipated $684.94 million. In addition to its financial performance, West Pharmaceutical announced the appointment of Robert McMahon as the new Chief Financial Officer, effective August 4, 2025, following Bernard Birkett’s retirement. Birkett will continue as a Senior Advisor to the CEO until the end of the year to ensure a smooth transition.
Furthermore, KeyBanc reiterated its Overweight rating for West Pharmaceutical, citing growth opportunities as a supplier for injectable GLP-1 weight loss and diabetes medications. The firm noted West’s involvement with nearly all injectable GLP-1 products and highlighted the company’s strategic facilities in Kinston, NC, Grand Rapids, and Dublin. The recent shareholder meeting also saw a high turnout, with 89.93% of common shares represented, where key proposals were voted on, including the election of directors and executive compensation. These developments reflect ongoing strategic growth and leadership transitions within West Pharmaceutical.
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