West Pharmaceutical Services reported a third quarter that beat expectations, with adjusted earnings per share rising 35.7% to $2.66 on sales of $874.5 million, up 8.7% year over year. The company raised its full-year adjusted earnings per share forecast to $9.38-$9.48. Growth in GLP-1 medicines, particularly at Eli Lilly, supports demand for injectable components, but West is also benefiting from its premium proprietary products and customers’ high-value product upgrades. Profits are growing much faster than sales, with operating margins expected to expand by nearly 300 basis points, while capital spending remains disciplined at 6%-8% of revenue. Shares gained more than 4% during the session after reaching a 52-week high of $438.27.
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