How did WST's Q3 2024 earnings surprise analysts?

West Pharmaceutical Services (WST) surprised analysts with its Q3 2024 earnings report by reporting robust performance despite destocking challenges:

1. **Earnings Per Share (EPS) and Revenue**: WST's EPS for Q3 2024 was $1.87, which was a decrease from the $2.17 reported in Q3 2023 but still exceeded analyst expectations of $1.50. The company's total revenue for the quarter was $746.9 million, slightly higher than the consensus estimate of $709.3 million.
2. **Stock Performance and Analyst Reception**:
- Despite the decline in EPS, WST's stock remained stable at $219.97, reflecting investor confidence in the company's performance.
- Analysts had anticipated a more significant drop in EPS, with expectations of $1.50; the reported EPS of $1.87 was thus a pleasant surprise.
- The company's revenue exceeded estimates, with a flat year-over-year growth in revenue at $746.9 million.
3. **Guidance and Market Sentiment**: WST provided guidance for FY 2024, expecting EPS to range between $6.55 and $6.75, indicating a positive outlook for the year.
- The market responded positively to the earnings report, with a slight increase in stock price and strong investor sentiment due to the company's resilience amid destocking challenges.

In conclusion, while there were minor deviations from expected performance, WST's Q3 2024 earnings report was generally in line with or exceeded analyst expectations, leading to positive market reactions.