WST Q3 Earnings Preview: Can GLP-1 Momentum Outweigh Margin Pressure?

West Pharmaceutical Services WST is scheduled to release third-quarter 2025 results on Oct. 23, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 21.85%. WST’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.81%.

Q3 Estimates

Per management, the company expects third-quarter revenues to be in the range of $785-$795 million, implying a 2.5% to 3.5% organic sales growth. Also, third-quarter adjusted diluted earnings per share (EPS) are expected to be in the range of $1.65 to $1.70.

Currently, the Zacks Consensus Estimate for revenues is pegged at $788 million, indicating growth of 5.5% from the year-ago period’s level. The consensus mark for earnings is pinned at $1.67 per share, indicating a decline of 9.7% year over year.

Our model estimates total revenues to be $786.8 million, implying a 3% organic improvement year over year. The adjusted EPS is estimated to be $1.66. While the Proprietary Products segment sales are anticipated to be $638 million (organic growth of 3.7%), Contract-Manufactured Products segmental sales are likely to be $148.8 million. Operating profit for the Proprietary Products and the Contract-Manufactured Products segments is likely to decline 5.6% and 24.8%, respectively.

Factors to Note

West Pharmaceutical Services is positioned for steady third-quarter results, supported primarily by the continued strength of its high-value product (HVP) portfolio. Growth in GLP-1 elastomer components is expected to have remained a significant contributor, complemented by Annex 1 compliance upgrades in Europe and higher penetration in biologics, where win rates are trending above historical averages. These factors reinforce the company’s strategy of driving mix toward higher-margin, stickier offerings.

The HVP delivery devices segment is anticipated to have built on recent gains, with Crystal Zenith containment and administration systems maintaining solid demand. SmartDose remains under evaluation due to profitability challenges, though ongoing cost-reduction measures and planned automation may improve economics in the future. Contract manufacturing is projected to have benefited from the scaling of the Dublin facility’s auto-injector and pen production, partially offsetting weakness from the phase-out of certain continuous glucose monitoring products. Standard products are likely to post modest growth, continuing to act as an entry point for future HVP conversions.

Despite these strengths, several challenges could have weighed on quarterly performance. Destocking effects in generics have not fully abated, and capacity constraints in certain European HVP facilities, alongside labor ramp-ups, might have limited near-term output efficiency.

Seasonal plant shutdowns in Europe are also expected to have pressurized gross margins sequentially, creating a modest step-down from prior levels. Additionally, tariff-related headwinds of $15–$20 million for the year remain an overhang, with potential variability depending on global trade developments.

West Pharmaceutical Services, Inc. Price

West Pharmaceutical Services, Inc. price | West Pharmaceutical Services, Inc. Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Intuitive Surgical this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3 at present.

Stocks Worth a Look

Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time around.

Globus Medical GMED has an Earnings ESP of +1.02% and a Zacks Rank #3 at present. The company is likely to release third-quarter 2025 results next month.

GMED’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 10.82%. According to the Zacks Consensus Estimate, EW’s third-quarter EPS is expected to decline 6% from the year-ago reported figure.

Edwards Lifesciences EW has an Earnings ESP of +0.47% and a Zacks Rank #3 at present. The company is set to release third-quarter fiscal 2025 results on Oct. 30.

EW’s earnings surpassed estimates in three of the trailing four quarters and met once, with the average surprise being 5.5%. According to the Zacks Consensus Estimate, EW’s third-quarter EPS is expected to decline 11.9% from the year-ago reported figure.

McKesson MCK has an Earnings ESP of +0.78% and a Zacks Rank of 3 at present. The company is slated to release second-quarter fiscal 2026 results on Nov. 5.

MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 1.50According to the Zacks Consensus Estimate, EW’s fiscal second-quarter EPS is expected to gain 26.2% from the year-ago reported figure.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research