Connecticut-based scientific instruments company,
) is set to report its first-quarter fiscal 2013 results on Apr
. In the last quarter it posted a 0.63% positive surprise. Let's
see how things are shaping up for this announcement.
Growth Factors This Past Quarter
Last quarter was a mixed one for Waters where it
surpassed the Zacks Consensus Estimate for earnings but
missed the Zacks Estimate for revenues. Sales grew 1.5% and
earnings per share grew 1.9% year over year in the quarter.
Earnings during the quarter benefited from the company's
initiatives to control expenses and maintain disciplined pricing.
The company's top-line figures increased organically due to a
stable pharmaceutical demand and strong sales in Asia. Waters'
partnership with DANI instruments benefited the company strongly.
Waters had been consistently reporting double-digit growth in
monthly sales until January this year.
Our proven model does not conclusively show that Waters is
likely to beat earnings this quarter. This is because a stock
needs to have both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
Negative Zacks ESP:
This is because the Most Accurate Estimate stands at $1.08 while
the Zacks Consensus Estimate is higher at $1.09. There is a
difference of -0.92%.
Zacks Rank #4 (Sell):
We caution against
stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into
the earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies operating in the same sector
that you may want to consider, as our model shows they have the
right combination of elements to post an earnings beat this
GILEAD SCIENCES (GILD): Free Stock Analysis
LOGITECH INTL (LOGI): Free Stock Analysis
SYNAPTICS INC (SYNA): Free Stock Analysis
WATERS CORP (WAT): Free Stock Analysis Report
To read this article on Zacks.com click here.
), Earnings ESP of +5.56% and a Zacks Rank #1 (Strong Buy)
), Earnings ESP of +2.08% and a Zacks Rank #2 (Buy)
Logitech International SA
), Earnings ESP of +81.82% and a Zacks Rank #3 (Hold)