Key TakeawaysShares of Waters Corp., which supplies lab instruments and software, notched the top performance in the S&P 500 Friday.The life sciences firm topped third-quarter sales and profit estimates, boosted by growth across all its regions and end markets.Waters CEO Dr. Udit Batra said new product adoption and improved customer spending trends contributed to the strong results. Shares of Waters Corp. (WAT) surged nearly 20% on Friday, delivering the top daily performance in the S&P 500 after the compan ...

Key TakeawaysThe S&P 500 added 0.4% on Friday, Nov. 1, as strong earnings results from Amazon helped lead a resurgence in communication and technology stocks.Waters Corp. shares surged after the analytical instrument supplier posted strong third-quarter results, benefitting from sales growth across all regions and markets.Virginia-based utility AES Corp. reported a year-over-year decline in revenue, and its shares tumbled. Following a pair of negative trading sessions, major U.S. equities indexes closed out ...

Financial Data and Key Metrics Changes - In Q3 2024, sales reached $740 million, growing 4% as reported and 4% in constant currency, exceeding guidance [41][13] - Adjusted EPS was $2.93, up 3% year-over-year, while GAAP EPS was $2.71 [50][13] - Gross margin expanded by 20 basis points to 59.3%, and adjusted operating margin was 30.8% [24][49] Business Line Data and Key Metrics Changes - Instruments grew 1%, chemistry grew 8%, and service grew 6% [47] - Recurring revenues returned to high single-digit growth, reflecting strong customer activity and installed base utilization [48] - In Pharma, sales grew 3%, while Industrial grew 7%, and Academic and Government remained flat [42] Market Data and Key Metrics Changes - All reported regions returned to growth, with mid-single-digit sales growth in Asia and Europe, and low single-digit growth in the Americas [45] - Excluding China, sales grew 5%, while in China, sales declined mid-single digits, showing improvement from previous quarters [45][46] - Orders in China were in line with last year, with expectations for positive growth in Q4 [46][90] Company Strategy and Development Direction - The company is focused on operational excellence, innovation, and expanding its product portfolio to meet customer needs [12][35] - Future growth is expected to be driven by GLP-1 adoption in pharma and PFAS-related testing in non-pharma segments [27][28] - The company is well-positioned to capitalize on the upcoming patent expirations of key blockbuster drugs [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the instrument replacement cycle and the positive momentum in customer spending [59][60] - The company anticipates continued growth in recurring revenues and strong performance in the chemistry segment [94][96] - Management highlighted the importance of the generics market in India and the potential for significant revenue from upcoming patent expirations [70][105] Other Important Information - The company raised its full-year 2024 organic constant currency sales growth guidance to a range of negative 0.9% to negative 0.3% [39][56] - Free cash flow for Q3 was $179 million, with a year-to-date free cash flow of $556 million, representing 27% of sales [51][52] - The company reduced debt by approximately $180 million in Q3, resulting in a net debt position of about $1.5 billion [52] Q&A Session Summary Question: Insights on the LC replacement cycle and drivers for future growth - Management noted that the LC segment has returned to growth after seven quarters of decline, driven by strong performance in large pharma QA/QC applications and generics in India [67][70] Question: Comments on the guidance and end markets - Management indicated that all end markets exceeded expectations, leading to an increase in Q4 guidance, with a focus on maintaining a consistent revenue ramp from Q3 to Q4 [82][84] Question: Update on China market conditions and stimulus impact - Management reported that China sales came in line with expectations, with orders matching last year, and expressed optimism about capitalizing on upcoming stimulus [86][90] Question: Positioning in instrumentation growth and recurring revenue sustainability - Management emphasized the stability of recurring revenues and the strong position in QA/QC testing, which differentiates the company from peers [92][96]

Waters™ Q3 2024 Earnings Call Presentation November 1, 2024 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 expression ...

Waters (WAT) came out with quarterly earnings of $2.93 per share, beating the Zacks Consensus Estimate of $2.68 per share. This compares to earnings of $2.84 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.33%. A quarter ago, it was expected that this maker of products used in drug discovery and development would post earnings of $2.55 per share when it actually produced earnings of $2.63, delivering a surprise of 3.14%.Over ...

Financial Performance - Sales for Q3 2024 were $740 million, a 4% increase from $712 million in Q3 2023[2] - GAAP EPS for Q3 2024 was $2.71, up from $2.27 in Q3 2023; non-GAAP EPS was $2.93, compared to $2.84 in Q3 2023[3] - Recurring revenue grew by 6% as reported and 7% in constant currency during the quarter[6] - The company raised its full-year 2024 non-GAAP EPS guidance to a range of $11.67 to $11.87[9] - Fourth quarter 2024 constant currency sales growth is expected to be between 5% and 7%[10] - The company expects full-year 2024 reported sales growth to be in the range of -0.8% to -0.2%[8] - For the three months ended September 28, 2024, Waters Corporation reported net sales of $740,305,000, a 4% increase from $711,692,000 in the same period of 2023[18] - The total recurring revenue for the three months ended September 28, 2024, was $417,229,000, representing a 6% increase from $392,261,000 in the same period of 2023[18] - The company reported a constant currency growth rate of 4% for total net sales in the three months ended September 28, 2024[18] - Organic constant currency growth for the nine months ended September 28, 2024, was reported at -3%, indicating a challenging market environment[19] Market Segments - Sales in the pharmaceutical market increased by 2% as reported and 3% in constant currency[5] - Instrument system sales increased by 1% as reported and in constant currency[6] - Sales in Asia increased by 5% as reported and 6% in constant currency during the quarter[6] - The Asia region experienced a 7% decline in sales, totaling $696,319,000 compared to $745,932,000 in the previous year[19] - The Pharmaceutical market reported net sales of $1,220,092,000, a decrease of 1% from $1,233,177,000 in the prior year[19] - The Chemistry product line saw an 8% growth in sales, reaching $138,935,000 compared to $128,650,000 in the previous year[18] - The Americas region's sales were $794,775,000, showing a slight decline of 1% from $804,827,000 in the prior year[19] Financial Position - Total assets decreased from $4.626 billion as of December 31, 2023, to $4.512 billion as of September 28, 2024[23] - Total liabilities decreased from $3.477 billion to $2.909 billion during the same period[23] - Cash, cash equivalents, and investments decreased from $395.974 million to $331.458 million[23] - Accounts receivable decreased from $702.168 million to $669.534 million[23] - Inventories slightly increased from $516.236 million to $518.994 million[23] Income and Cash Flow - The company reported a net income of $136.113 million for the nine months ended September 28, 2024, with an adjusted EPS of $6.83[22] - Net income for the three months ended September 28, 2024, was $161,503 thousand, an increase of 19.98% compared to $134,552 thousand for the same period in 2023[24] - Net cash provided by operating activities for the nine months ended September 28, 2024, was $521,984 thousand, up 40.05% from $372,687 thousand in the same period of 2023[24] - Net cash used in investing activities for the nine months ended September 28, 2024, was $91,910 thousand, compared to $1,404,321 thousand in the same period of 2023[24] Projections - Projected organic constant currency sales growth rate for the twelve months ending December 31, 2024, is estimated at (0.9%)[25] - Projected GAAP earnings per diluted share for the twelve months ending December 31, 2024, is expected to be between $10.55 and $10.75[25] - Adjusted non-GAAP earnings per diluted share for the twelve months ending December 31, 2024, is projected to be between $11.67 and $11.87[25] - The company experienced a currency translation impact of (1.2%) on sales growth rate as reported for the twelve months ending December 31, 2024[25] Other Financial Metrics - The company recognized a retention bonus obligation of $15.268 million related to the Wyatt acquisition[22] - Adjusted Non-GAAP EPS for the nine months ended September 30, 2023, was $8.13, reflecting a 29.4% increase[22] - Stock-based compensation for the three months ended September 28, 2024, was $10,647 thousand, an increase from $8,490 thousand in the same period of 2023[24] - The company reported a net change in debt of $(180,000) thousand for the three months ended September 28, 2024, compared to $(125,181) thousand for the same period in 2023[24]

Highlights Sales of $740 million exceeded guidance, grew 4% as reported and 4% in constant currency Instruments returned to growth; recurring revenue grew high single-digits in constant currency All reported regions returned to growth in the quarter; sales grew across all end markets, led by Pharma & Industrial GAAP EPS of $2.71 and non-GAAP EPS of $2.93 significantly exceeded guidance, led by strong operational performance and better-than-expected market conditions Raised full-year sales and EPS guidance, ...

The Barnacle is a quantitative analyst and has been in and out of the investing business since 2003. He is a former member of Marketocracy's M100 Club. He has a degree in mathematics and believes that mathematics is the root of all success. If the numbers tell one to do something, then do it. When one reads his posts, one will realize that. Consequently, he does not put much stock in sell-side analysis, since most of it is pretty bad. he will share posts about value stocks that still have growth potential. ...

The market expects Waters (WAT) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on November 1, 2024, might help the stock move higher if these key numbers are be ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Waters (WAT) , which belongs to the Zacks Medical - Instruments industry, could be a great candidate to consider.This maker of products used in drug discovery and development has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 4.19%.For the most re ...