Core Insights - Waters Corporation reported strong fourth-quarter 2024 results with non-GAAP earnings of $4.10 per share, exceeding the Zacks Consensus Estimate by 1.99% and reflecting a 13.3% year-over-year increase from $3.62 [1][3] - Net sales reached $872.7 million, surpassing the Zacks Consensus Estimate of $857 million, marking a 6.5% increase on a reported basis and an 8% increase on a constant-currency basis compared to the previous year [2][3] Financial Performance - The company experienced double-digit growth in the Pharma segment, with instrument sales and recurring revenue showing high-single-digit gains in constant currency [3] - Non-GAAP selling and administrative expenses decreased by 2.6% year-over-year to $168.5 million, representing a contraction of 180 basis points as a percentage of net sales [8] - Research and development spending rose by 8.9% year-over-year to $46.3 million, with the adjusted operating margin increasing by 60 basis points to 35.5% [9] Sales Breakdown - Waters operates under two segments: Waters (87.6% of net sales) with sales of $764.3 million, up 6.6% year-over-year, and TA (12.4% of net sales) with sales of $108.4 million, reflecting 5.7% growth [4] - Sales by product category included Instruments at $419.6 million (48.1% of net sales, up 5.6%), Services at $301.8 million (34.6% of net sales, up 8.2%), and Chemistry at $151.3 million (17.3% of net sales, up 5.5%) [5] Market and Geographic Performance - The Pharmaceutical market generated $498.8 million in sales (57.2% of net sales), increasing by 7.6% year-over-year, while the Industrial market saw sales of $264 million (30.3% of net sales, up 1.5%) and the Governmental and Academic market generated $109.9 million (12.6% of net sales, up 15%) [6] - Geographic sales included Asia at $272.9 million (31.3% of net sales, up 4.2%), the Americas at $321 million (36.8% of net sales, up 5.7%), and Europe at $278.8 million (31.9% of net sales, up 9.8%) [7] Cash Flow and Guidance - As of December 31, 2024, Waters had cash, cash equivalents, and investments totaling $325.4 million, with cash from operations increasing to $240.1 million from $204.6 million in the prior quarter [10] - For Q1 2025, Waters expects non-GAAP earnings of $2.17-$2.25 per share, with organic sales growth anticipated at 4-7% on a constant-currency basis, while total sales growth is projected at 1-4% [11][12]

Financial Data and Key Metrics Changes - In Q4 2024, sales grew 6.4% as reported and 8% in constant currency, exceeding the high end of guidance [13][38] - Non-GAAP EPS was $4.10, reflecting 13% growth, while GAAP EPS was $3.88 [15][48] - For the full year, non-GAAP EPS grew 1% to $11.86, including a 5% decline due to foreign exchange headwinds [16][48] Business Line Data and Key Metrics Changes - Pharma sales grew 10% in Q4, driven by low double-digit growth in Europe and Asia, and high single-digit growth in the Americas [17] - Recurring revenues grew 6% for the full year, with chemistry consumables and service businesses showing resilience [43] - Instruments grew 8% in Q4, with significant contributions from liquid chromatography and mass spectrometry [42] Market Data and Key Metrics Changes - By geography, Europe grew 11%, Asia 9%, and Americas 6% in Q4 [19] - In China, sales returned to positive growth, up low single digits [19] - The PFAS testing market is valued at $400 million, growing at 20% annually, with Waters growing over 40% in this segment [23] Company Strategy and Development Direction - The company is focused on high-volume life science applications, capitalizing on new product launches and customer needs [11][27] - There is an expectation of continued growth in the analytical instruments market, driven by instrument replacement cycles and new applications [30][33] - The company plans to maintain margin expansion and operational excellence while exploring M&A opportunities [51][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of customer CapEx spending and instrument replacement, expecting strong momentum into 2025 [12][35] - The guidance for 2025 anticipates constant currency sales growth of 4.5% to 7%, with a focus on operational performance to counteract foreign exchange headwinds [36][54] - Management highlighted the importance of new product performance and customer engagement in driving future growth [76][94] Other Important Information - Free cash flow for Q4 was $188 million, with a full-year total of $744 million, representing 25% of sales [49] - The company reduced debt by approximately $200 million in Q4, with a net debt position of about $1.3 billion [50] - The company is evaluating the resumption of its share repurchase program in 2025 [51] Q&A Session Summary Question: Can you discuss budget flush dynamics and the replacement cycle? - Management noted a typical budget flush in Q4, with high single-digit instrument growth and strong performance in large pharma driving the replacement cycle [66][68] Question: How are macro-related risks incorporated into guidance? - Management indicated that the guidance reflects strong performance in Pharma and recurring revenues, with prudence built into the lower end of the guidance [74][78] Question: What is the contribution of GLP-1 and PFAS testing to growth? - Management expects both GLP-1 and PFAS testing to contribute 30 basis points each to growth, with India expected to add 70 to 100 basis points [84] Question: How does the company view the academic market in light of NIH cuts? - Management acknowledged uncertainties in the academic market but maintained a cautious optimism based on strong performance in other segments [90][92] Question: What are the dynamics in Europe and India? - Management highlighted strong growth in both regions, with India benefiting from a significant generics opportunity and Europe seeing broad-based growth across segments [98][102]

Q4 2024 Earnings Call Presentation February 12, 2025 Forward-Looking Statements & Non-GAAP Financial Measures This presentation contains forward-looking statements regarding future results and events, including financial and operational guidance and projected estimates. For this purpose, any statements that are not statements of historical fact may be deemed forward-looking statements. Words such as "may," "will," "expect," "plan," "anticipate," "estimate," "intend," "outlook," and similar expressions (as w ...

Waters (WAT) came out with quarterly earnings of $4.10 per share, beating the Zacks Consensus Estimate of $4.02 per share. This compares to earnings of $3.62 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.99%. A quarter ago, it was expected that this maker of products used in drug discovery and development would post earnings of $2.68 per share when it actually produced earnings of $2.93, delivering a surprise of 9.33%.Over ...

Sales Performance - Fourth quarter 2024 sales were $873 million, a 6% increase from $819 million in Q4 2023, with a 2% decrease due to currency translation[4]. - Full-year 2024 sales were $2,958 million, flat compared to $2,956 million in 2023, with a 1% decrease from currency translation and a 1% increase from acquisitions[10]. - Sales in the pharmaceutical market increased 10% in constant currency during Q4 2024, while sales in the academic and government market increased 16%[8]. - Instrument system sales increased 8% in constant currency during Q4 2024, while recurring revenues grew 9% in constant currency[6]. - The pharmaceutical market generated $498,807,000 in net sales, an 8% increase from $463,698,000, with a constant currency growth rate of 10%[27]. - For the twelve months ended December 31, 2024, total net sales remained flat at $2,958,387,000 compared to $2,956,416,000 in 2023, with a 0% change[29]. - The service segment experienced a 6% increase in net sales for the twelve months, totaling $1,114,211,000, compared to $1,053,366,000 in the previous year[29]. - The academic and government market saw a 6% decrease in net sales, totaling $331,002,000 compared to $350,538,000 in 2023[29]. Earnings and Profitability - Non-GAAP EPS for Q4 2024 was $4.10, a 13% increase from $3.62 in Q4 2023, while GAAP EPS was $3.88 compared to $3.65 in Q4 2023[5]. - Non-GAAP EPS for full-year 2024 was $11.86, a 1% increase from $11.75 in 2023, while GAAP EPS was $10.71 compared to $10.84 in 2023[11]. - For the three months ended December 31, 2024, GAAP operating income was $292,263 thousand, representing a 33.5% margin, compared to $264,223 thousand and a 32.2% margin for the same period in 2023[31]. - The company’s operating income for the twelve months ended December 31, 2024, was $826,353 thousand, with a margin of 27.9%, compared to $817,676 thousand and a margin of 27.7% for 2023[31]. - Adjusted Non-GAAP diluted earnings per share for Q4 2024 was $4.10, up from $3.62 in Q4 2023, reflecting a 13.2% increase[31]. Cash Flow and Financial Health - Operating cash flow for full-year 2024 was $762 million, with free cash flow of $744 million, representing 25% of full-year sales[6]. - Net cash provided by operating activities for the twelve months ended December 31, 2024, was $762,123, up from $602,809 in 2023, representing a growth of about 26.4%[40]. - Free Cash Flow - Adjusted Non-GAAP for the twelve months ended December 31, 2024, was $744,307, compared to $554,040 in 2023, indicating an increase of approximately 34.4%[42]. - The company reported a significant reduction in total liabilities from $3,476,513 thousand in 2023 to $2,725,288 thousand in 2024, indicating improved financial health[38]. - The company reported a net cash used in investing activities of $144,023 for the twelve months ended December 31, 2024, compared to $1,442,265 in 2023, showing a significant reduction in cash outflow[40]. - The company experienced a net change in debt of $(730,000) for the twelve months ended December 31, 2024, compared to a net increase of $779,600 in 2023[40]. Future Projections - The company expects full-year 2025 constant currency sales growth of 4.5% to 7.0%, with reported sales growth expected to be 2.5% to 5.0%[13]. - First quarter 2025 non-GAAP EPS is projected to be between $2.17 and $2.25, including an estimated 7% headwind from unfavorable foreign exchange[17]. - Projected sales growth rate for the twelve months ending December 31, 2025, is expected to be 2.5% to 5.0%, with a constant currency sales growth rate of 4.5% to 7.0%[46]. - GAAP earnings per diluted share for the twelve months ending December 31, 2025, is projected to be between $11.83 and $12.13, with adjusted non-GAAP earnings per diluted share expected to range from $12.70 to $13.00[46]. - The company expects a currency translation impact of (2.0%) on sales growth for the twelve months ending December 31, 2025[46]. Assets and Equity - Total assets decreased from $4,626,854 thousand as of December 31, 2023, to $4,553,795 thousand as of December 31, 2024[38]. - Cash, cash equivalents, and investments decreased from $395,974 thousand in 2023 to $325,355 thousand in 2024, reflecting a decline of approximately 18%[38]. - The company’s total stockholders' equity increased from $1,150,341 thousand in 2023 to $1,828,507 thousand in 2024, showing a growth of 59%[38]. Research and Development - Research and development expenses for Q4 2024 were $46,914 thousand, slightly higher than $44,386 thousand in Q4 2023, indicating continued investment in innovation[31]. - The company incurred restructuring costs of $1,480 thousand in Q4 2024, compared to $1,036 thousand in Q4 2023, reflecting ongoing operational adjustments[31]. - The company plans to continue its ERP implementation and transformation, which involves one-time costs that do not represent ongoing business expenses[36]. Regional Performance - In the geographical breakdown, Europe saw the highest growth at 10%, with net sales reaching $278,806,000, up from $253,835,000 in 2023[27]. - The Asia region reported a 4% decline in net sales for the twelve months, totaling $969,222,000, down from $1,007,825,000[29].

Core Insights - Waters Corporation reported fourth quarter 2024 sales of $873 million, a 6% increase from $819 million in the same quarter of 2023, with a 2% negative impact from currency translation [1][4] - The company achieved a GAAP diluted EPS of $3.88 for Q4 2024, up from $3.65 in Q4 2023, while non-GAAP EPS increased by 13% to $4.10, compared to $3.62 in the prior year [2][14] - Full-year 2024 sales were $2,958 million, flat compared to $2,956 million in 2023, with currency translation negatively impacting sales by approximately 1% [6][14] Fourth Quarter 2024 Performance - Sales in the pharmaceutical market rose by 8% as reported and 10% in constant currency, while industrial market sales increased by 1% as reported and 2% in constant currency [4] - Instrument system sales grew by 6% as reported and 8% in constant currency, and recurring revenues increased by 7% as reported and 9% in constant currency [5] - Geographically, sales in Asia increased by 4% as reported and 9% in constant currency, while sales in the Americas and Europe grew by 6% and 10% respectively [5] Full-Year 2024 Overview - The company reported a GAAP EPS of $10.71 for 2024, down from $10.84 in 2023, while non-GAAP EPS increased by 1% to $11.86 [7][14] - The GAAP operating income margin for 2024 was 27.9%, with an adjusted operating income margin expansion to 31.0% [14] - Operating cash flow for the year was $762 million, with free cash flow of $744 million, representing 25% of full-year sales [14] Financial Guidance for 2025 - Waters Corporation expects full-year 2025 constant currency sales growth to be in the range of 4.5% to 7.0%, with a currency translation impact expected to decrease sales growth by approximately 2% [9][10] - The projected non-GAAP EPS for 2025 is estimated to be between $12.70 and $13.00, accounting for an estimated 4% headwind from unfavorable foreign exchange [10][36] - For the first quarter of 2025, the company anticipates constant currency sales growth of 4.0% to 7.0%, with a currency translation impact expected to decrease growth by approximately 3.0% [11][12]

Core Insights - Waters Corporation has launched the TA Instruments™ ElectroForce™ Apex 1 Mechanical Testing Instrument, designed for enhanced versatility, speed, and ease of use in tensile and fatigue testing of high-performance polymers and composites [2][4]. Product Features - The ElectroForce Apex 1 Instrument offers a motor stroke range that is at least 43% greater than competitors, allowing for a wider variety of material testing [4][7]. - The instrument can speed up testing by up to 30%, which aids in early development by identifying weaknesses in material selection and design [4][7]. - It includes new software features such as TuneIQ™ Technology for automatic tuning without operator intervention, enhancing testing efficiency [5][7]. Industry Relevance - The demand for material strength and durability testing is increasing in industries such as medical devices, aerospace, automotive, and additive manufacturing [4][5]. - As manufacturers shift towards high-quality sustainable materials, the need for accurate and affordable mechanical testing solutions is becoming more critical [5][7]. Availability - The Waters ElectroForce™ Apex 1 Mechanical Testing Instrument is available for order as of the announcement date [6].

Group 1 - The Biotech Forum has been focusing on profitable buy-write or covered call strategies for selected biotech stocks in recent months [1] - Waters Corporation (NYSE: WAT) is highlighted for its analytical workflow solutions in the healthcare sector, based in Milford, MA [2] - The Biotech Forum offers a model portfolio featuring 12-20 high upside biotech stocks, along with live discussions and weekly market commentary [2] Group 2 - The article does not provide any specific financial data or performance metrics related to Waters Corporation or the biotech sector [3][4]

News Summary: New and proprietary product enabling laboratories to analyze atmosphere-sensitive materials used to develop batteries, advanced polymers, and medicines in a standard laboratory benchtop-installed thermogravimetric analyzer (TGA). Reduces the cost and footprint of the TGA system by up to 50%i by helping eliminate the need for environment-controlled housing, or glovebox. Enables laboratories to increase throughput without sacrificing data quality and reliability. MILFORD, Mass., Jan. 22, 2025 /P ...

MILFORD, Mass., Jan. 17, 2025 /PRNewswire/ -- Waters Corporation (NYSE:WAT) will hold its Q4 2024 financial results conference call live on Wednesday, February 12th, 2025 at 8:00 a.m. Eastern Time. A live webcast of the presentation will be available on Waters Investor Relations website at https://ir.waters.com. A replay of the webcast will also be available until at least March 12th, 2025, at midnight Eastern Time. About Waters Corporation Waters Corporation (NYSE: WAT), a global leader in analytical instr ...