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Waters Corp. (WAT) Q2 Earnings Beat Estimates, Sales Up Y/Y
July 25, 2017

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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 up 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 an earnings beat of 9.8%. The company boasts a solid earnings track record, having beaten estimates thrice in the trailing four quarters. The average earnings surprise over the last four quarters is a positive 5.8%.

Waters Corporation Price and EPS Surprise

Currently, WAT has a Zacks Rank #2 (Buy) but that could change following its second-quarter 2017 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

Earnings: WAT beat on earnings. Adjusted earnings per share came in at $1.76, higher than the Zacks Consensus Estimate of $1.72.

Revenue: Revenues came in at $558 million, and grew 4% over the prior-year quarter’s tally.

Key Stats:  Waters witnessed robust sales growth in Asia and Europe. Also, strong market traction in the bio/pharmaceutical end markets and impressive performance from service and chemistry consumables drove the impressive results.

Stock Price: WAT 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!

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