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Waters (WAT) to Report Q2 Earnings: What's in the Cards?

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Waters Corporation (WAT - Free Report) is scheduled to report second-quarter 2021 results on Aug 3.

For the second quarter, Waters expects non-GAAP earnings between $2.15 and $2.25 per share. The Zacks Consensus Estimate for the same is pegged at $2.24 per share, suggesting growth of 6.7% from the year-ago reported figure.

Further, the company expects net sales growth between 14% and 16% on a constant currency basis. The consensus mark for second-quarter revenues stands at $614.5 million, implying an 18.2% improvement from the prior-year reported value.

It surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 30.9%.

Waters Corporation Price and EPS Surprise

Waters Corporation Price and EPS Surprise

Waters Corporation price-eps-surprise | Waters Corporation Quote

Key Factors to Note

Benefits from Waters’ rising investments in liquid chromatography instruments, mass spectrometers and chemistries are likely to get reflected in the upcoming second-quarter results.

Further, growing customer momentum for newer instruments is expected to have remained a tailwind.

Strength in ACQUITY PREMIER Columns and System might have persistently contributed to its performance during the quarter under review. In addition, it introduced Waters Arc Premier System during the quarter, which might have been a positive.

Further, BioAccord — the company’s robust liquid chromatography-mass spectrometry (LC-MS) solution — is expected to have benefited its performance in the to-be-reported quarter.

During the second quarter, it unveiled a high-resolution mass spectrometer, namely SELECT SERIES Multi Reflecting Time-of-Flight technology. It also introduced SARS-CoV-2 LC-MS Kit (RUO) for critical SARS-CoV-2 research. These initiatives are likely to have remained a tailwind.

Apart from this, strength of the TA Instrument division is anticipated to have continued aiding the company’s performance in the soon to-be-reported quarter.

Further, improving performance in all major geographies is expected to have been another positive for Waters.

Yet, uncertainties related to the ongoing coronavirus pandemic might get reflected in the upcoming quarterly results.

What Our Model Says

Our proven model 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.

It has an Earnings ESP of +2.71% and a Zacks Rank #3, at present.

Other Stocks to Consider

Here are some other stocks that you may also consider as our model shows that these too have the right combination of elements to beat on earnings this season.

Agilent Technologies (A - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank #2, at present.

Avnet (AVT - Free Report) has an Earnings ESP of +9.82% and a Zacks Rank of 1, at present.

CyberArk Software (CYBR - Free Report) has an Earnings ESP of +37.93% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.