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Waters (WAT) to Report Q4 Earnings: What's in the Offing?

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Waters Corporation (WAT - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 2.

The Zacks Consensus Estimate forthe company’s fourth-quarter earnings is pegged at $2.84 per share, suggesting a decline of 11.3% from the year-ago quarter’s reported figure.

Further, the consensus mark for fourth-quarter revenues is projected at $706.8 million, which indicates a year-over-year decrease of 1.3%.

Notably, the company beat estimates thrice in the trailing four quarters, while missing the same once. It has a trailing four-quarter positive earnings surprise of 9.32%, on average.

Waters Corporation Price and EPS Surprise

 

Waters Corporation Price and EPS Surprise

Waters Corporation price-eps-surprise | Waters Corporation Quote

Factors to Consider

Product introductions are expected to have contributed to Waters’ fourth-quarter performance.

Moreover, the company’s strong investments in liquid chromatography instruments, mass spectrometers and chemistries are anticipated to have contributed to its performance in the large molecule market in the to-be-reported quarter.

Furthermore, Waters’ large molecule applications are expected tohave witnessed a strong adoption rate, which is likely to get reflected in the fourth-quarter results.

Additionally, the company’s robust technology portfolio is likely to have strengthen edits presence in the liquid chromatography market in the quarter to be reported.

BioAccord, which is the company’s robust liquid chromatography-mass spectrometry solution, is expected to have benefited the Waters segment’s performance in the to-be-reported quarter.

Further, strength in products like Cyclic IMS and SYNAPT XS are anticipated to have contributed to the fourth-quarter performance.

Moreover, Waters’ Discovery X3 Scanning Calorimeter, Discovery Hybrid Rheometers, TAM IV, Micro XL isothermal and Microcalorimeter are expected to have benefited it in the thermal analysis market in the quarter under review.

Solid recovery in China, Europe and America is also anticipated to have driven the company’s performance in the soon-to-be-reported quarter.

However, the impacts of the coronavirus-led uncertainties are expected to get reflected in the company’s fourth-quarter results.

What Our Model Says

Our proven model conclusively predicts an earnings beat for Waters this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Waters has an Earnings ESP of +1.85% and a Zacks Rank #3.

Other Stocks to Consider

Here are some other stocks you may consider, as our proven model shows that thesetoo have the right combination of elements to post an earnings beat this quarter.

Qorvo, Inc. (QRVO - Free Report) has an Earnings ESP of +0.78% and it currently sports a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Synaptics Incorporated (SYNA - Free Report) has an Earnings ESP of +1.42% and a Zacks Rank of 2 at present.

PayPal Holdings, Inc. (PYPL - Free Report) currently has an Earnings ESP of +1.93% and a Zacks Rank #3.

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