On July 24, West Pharmaceutical declined 5.41% in regular trading, trading at approximately $336.26/share, with turnover of $1.36 billion. The stock gave back most of its prior session gains in a classic sell-the-news pattern following a strong earnings report.
The company reported Q2 adjusted EPS of $2.37, beating the consensus estimate of $2.08 by nearly 14% and representing a 28.8% year-over-year increase from $1.84. Net sales came in at $872.3 million versus the $840 million estimate, driven by a 29.6% surge in HVP delivery device sales to $131.2 million. Management simultaneously raised full-year adjusted EPS guidance to $8.85-$9.05, well above the prior range of $8.40-$8.75 and the Street estimate of $8.62.
Despite the beat, the stock retraced after surging over 6% in pre-market trading the prior session. On the same day, Jefferies raised its target to $410 and Deutsche Bank lifted its target to $420, both maintaining Buy ratings, yet the positive catalysts failed to sustain momentum as investors locked in profits.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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