(Reuters) – West Pharmaceutical Services forecast full-year profit and revenue below Wall Street estimates on Thursday due to a strong dollar and as the medical equipment maker’s clients reduce inventory levels, sending its shares down 18% premarket.
It forecast 2025 revenue of between $2.88 billion and $2.91 billion, with the midpoint below analysts’ estimates of $3.04 billion, according to data compiled by LSEG.
The company expects 2025 adjusted earnings per share of between $6 and $6.20, compared with estimates of $7.44.
“The impact of destocking continues to moderate,” CEO Eric Green said in a statement.
West Pharma’s revenues and order books have been under pressure from biotech clients depleting inventories they had built up during pandemic-era supply chain disruptions.
However, the company’s fourth-quarter profit and revenue both came in above expectations, due to rising demand in its business that makes cartridges and syringes used to manufacture injectable therapies.
Revenue in the proprietary products unit came in at $613.9 million, above analysts’ average estimates of $597.8 million. The segment makes up more than half of the company’s total revenues.
The company reported total revenue of $748.8 million for the fourth quarter ended December 31, compared with estimates of $740.5 million
On an adjusted basis, the company posted a profit of $1.82 per share, compared with estimates of $1.72.
(Reporting by Kamal Choudhury in Bengaluru; Editing by Devika Syamnath)
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