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

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Waters Corporation (WAT - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 1.

For the fourth quarter, it expects non-GAAP earnings between $3.40 and $3.50 per share. The Zacks Consensus Estimate for the same is pegged at $3.47 per share, indicating a decline of 4.9% from the year-ago reported figure.

Further, the company expects net sales growth between 5% and 7% on a constant-currency basis. The consensus mark for fourth-quarter revenues stands at $820.3 million, implying a 4.3% improvement from the prior-year reported value.

It surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 25.7%.

Waters Corporation Price and EPS Surprise

Waters Corporation Price and EPS Surprise

Waters Corporation price-eps-surprise | Waters Corporation Quote

Key Factors to Note

Solid momentum across pharmaceutical and industrial end markets is likely to have continued benefiting Waters’ fourth-quarter performance.

Improved performance in all major geographies is expected to have remained a positive factor for the company.

Growing demand for instruments by pharmaceutical customers in India is anticipated to have continued supporting WAT’s quarterly performance.

Also, increasing customer momentum for newer instruments is expected to have remained a tailwind in the to-be-reported quarter.

Continuous investments in liquid chromatography instruments, mass spectrometers and chemistries are likely to have contributed well to the top line in the quarter under discussion.

Also, strength in Arc HPLC and Premier instruments might have persistently benefited its top line during the quarter under review.

The company’s robust liquid chromatography-mass spectrometry solution named BioAccord is expected to have aided its performance in the to-be-reported quarter.

Further, the TA Instrument division’s strength across all major geographies and product lines is likely to have continued supporting its performance in the quarter under review.

Yet, uncertainties related to the ongoing coronavirus pandemic might get reflected in the upcoming quarterly results. Further, softness in the governmental and academic market is likely to have been a concern.

Further, increasing operating expenses owing to higher labor costs are expected to have affected its quarterly performance.

What Our Model Says

Our proven model does not conclusively predict 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. But that’s not the case here. 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 0.00% and a Zacks Rank #3, at present.

Stocks to Consider

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

Endava (DAVA - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Endava is scheduled to release second-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 59 cents per share, suggesting an increase of 55.26% from the prior-year reported figure.

Monolithic Power Systems (MPWR - Free Report) has an Earnings ESP of +2.83% and a Zacks Rank #2 at present.

Monolithic Power Systems is set to report fourth-quarter 2021 results on Feb 10. The Zacks Consensus Estimate for MPWR’s earnings is pegged at $1.87 per share, which suggests an increase of 42.75% from the prior-year reported figure.

AMETEK (AME - Free Report) has an Earnings ESP of +0.38% and a Zacks Rank #2 at present.

AMETEK is scheduled to release fourth-quarter 2021 results on Feb 3. The Zacks Consensus Estimate for AME’s earnings is pegged at $1.31 per share, which suggests an increase of 21.3% from the prior-year reported figure.