On May 9, 2013, shares of
) hit a new 52-week high of $97.12, beating its previous high of
$96.25 attained on Apr 11. Waters Corp. shares are currently
trading at $96.42 as of closing on May, 09, reflecting a
year-to-date return of 10%. .
Shares of this leading laboratory solutions provider have been
riding high since it reported solid fiscal 2012 results.
Recently, the company reported its first quarter 2013 results
with EPS of $1.07, up 7.0% from $1.00 in the first quarter of
2012. The company's current P/E ratio is 18.3 as compared to the
15.1 for the S&P 500 companies. Let us try to gauge the
factors that propelled the stock to its 52-week high.
The company has hidden strengths in multiple areas. Waters
reported earnings of $1.07 per share from continuing operations
in first quarter 2013. Earnings in the quarter increased 7% from
$1.00 in the year-ago quarter, benefiting from stringent
cost-control and disciplined pricing initiatives. Total revenue
grew 2.3% year over year to $430 million in the first quarter of
2013. As per the Zacks Consensus Estimate, revenue growth
expectation for Waters is 5.26%, while earnings growth
expectation is 10.07%.
In March, Waters Corp. unleashed a bunch of new and innovative
products and technologies at the Pittsburgh Conference on
Analytical Chemistry and Applied Spectroscopy (Pittcon). The
noteworthy products unveiled include Waters ACQUITY Advanced
Polymer Chromatography (APC) System, Paradigm Scientific Search
Software, Quality Control Reference Materials (QCRMs) and the
updated Alliance HPLC Designs. This new and improved product
portfolio will definitely augment more revenue in future.
Additionally, Waters Corp. entered into a partnership with Dani
Instruments for using its Empower Chromatography Data Software to
control the former's Headspace and Gas Chromatography
instruments. Waters' partnership with DANI instruments benefited
the company immensely.
Waters had been consistently reporting double-digit growth in
monthly sales until January this year. The company's top-line
figures increased organically due to a stable pharmaceutical
demand and strong sales in Asia.
ALLIANCE FIBER (AFOP): Free Stock Analysis
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WATERS CORP (WAT): Free Stock Analysis Report
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Other Stocks to Consider
Waters Corp. is expected to derive significant benefits from new
product innovations in the future. Presently, Waters Corp. has a
Zacks Rank #3 (Hold). Some other companies of the same sector
worth considering at the moment are
Aspen Technology, Inc.
Alliance Fiber Optic Products Inc.
Amkor Technology, Inc.
), each carrying a Zacks Rank #1 (Strong Buy).