FX.co ★ Waters Q3 Beats Market, Issues Q4 View; Lifts FY24 Outlook

Waters Corp. (WAT) has delivered a robust third-quarter performance, surpassing market expectations, and has subsequently updated its outlook for the fourth quarter along with enhancing its fiscal 2024 forecast.

For the upcoming fourth quarter, Waters Corp., a leader in analytical instruments and software, projects adjusted earnings per share (EPS) to range between $3.90 and $4.10. Market analysts, surveyed by Thomson Reuters, anticipate the company to post earnings of approximately $4.09 per share, though such estimates often exclude special items.

The company forecasts its sales growth to fall between 3.3% and 5.3%, with growth on a constant currency basis expected at 5.0% to 7.0%.

Looking ahead to fiscal 2024, Waters has revised its adjusted EPS projection upwards to $11.67-$11.87, from a prior estimate of $11.55-$11.65. This adjustment compares favorably to the market expectation of $11.60 per share for the year.

Regarding annual sales, Waters now foresees a decline ranging from 0.8% to 0.2%, a notable improvement from the previously anticipated drop of 2.2% to 0.7%. On an organic constant currency basis, sales are projected to decrease between 0.9% and 0.3%, a less severe contraction compared to the earlier forecast of a 2.0% to 0.5% reduction.

In the third quarter, Waters Corp. reported a significant earnings increase year-over-year, outperforming Street estimates. The net income was reported at $161.50 million, or $2.71 per share, up from $134.55 million, or $2.27 per share, in the comparable period the previous year. Adjusted earnings stood at $174.30 million or $2.93 per share compared to last year's $168.55 million or $2.84 per share, against analyst expectations of $2.68 per share.

Revenue rose by 4.0% to $740.31 million, surpassing analysts' forecast of $713.02 million, up from $711.69 million in the previous year.