Back to top

Image: Bigstock

Waters Corp. (WAT) Q3 Earnings in Line, Revenues Miss

Read MoreHide Full Article

Milford, Massachusetts-based Waters Corporation (WAT - Free Report) is a prominent medical instrument supplying firm, conducting trade in the healthcare sector. The company is renowned analytical instrument producer but also builds and supplies software-based products to its customers.

WAT’s global pharmaceuticals business, its largest single market and major revenue driver, is the company’s major profit churner fuelling its growth. Waters Corp.’s solid market presence in both high-performance liquid chromatography market and mass spectrometry markets, strength in regulated testing, non-discretionary product demand are its staple growth drivers.

Also, the company’s robust product portfolio supplements its strength. Thriving life sciences and analytical instrument markets, accelerated drug approvals by the FDA and favorable funding environment bode well for the company’s future growth.

Despite the positives, Waters Corp.’s debt levels and the consequent interest expenses remain a burden, given its recent acquisitions. Also, rising R&D expenses, currency fluctuations and volatility in client spending add to the company’s woes.

In the last quarter, Waters Corp. had posted a positive earnings surprise of almost 9.0%. The company boasts a solid earnings track record, having beaten estimates in each of the trailing four quarters. The average earnings surprise over the last four quarters is a positive 3.5%.

Currently, WAT has a Zacks Rank #3 (Buy) but that could change following its third-quarter 2016 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank stocks here.

We have highlighted some of the key details from the just-released announcement below:

Earnings: WAT's third-quarter adjusted earnings per share were $1.57, in line with the Zacks Consensus Estimate.

RevenueRevenues of $526.8 million fell short of the Zacks Consensus Estimate of $533 million.

WATERS CORP Price and EPS Surprise

 

WATERS CORP Price and EPS Surprise | WATERS CORP Quote

Key Stats: WAT’s top-line mainly benefitted from the robust performance of its bio/pharmaceutical market, which grew13% on a year-over-year basis. On a geographic basis, Asia emerged as the winner with 13% in growth in sales in terms of constant currency.

Stock PriceWAT shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on this WAT earnings report later!

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>   


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Waters Corporation (WAT) - free report >>