) reported second-quarter 2013 earnings per share from continuing
operations of $1.08, missing the Zacks Consensus Estimate of
$1.21 by 10.7%. In addition, earnings also declined 8% year over
year. Decline in profits was primarily attributable to an
unexpected slowdown in orders in the instrument system.
Total revenue in the second quarter was almost flat year over
year at $451.1 million. Unfavorable currency translation impacted
the top line by 2%. The difficult market condition was a
challenge for the company.
Gross profit for the quarter was $262.8 million, which was
down 3.5% from $272.2 million reported in the prior-year quarter.
Gross margins for the quarter were down 204 basis points (bps) to
58.3%. The decline was primarily attributable to unfavorable
currency translation and additional software amortization due to
the release of the UNIFI products.
Operating income for the quarter stood at $112.7 million,
which declined 6.2% from $120.1 million in the second quarter of
2012. The company incurred total SG&A expense of
approximately $123.0 million in the quarter, down 0.3% year over
year. R&D expense was around $24.6 million in the quarter
versus $23.9 million in the prior-year quarter. The operating
margin was down 163 bps to 24.9%.
Exiting the quarter, cash, cash equivalents and short-term
investments reached approximately $1.65 billion compared with
$1.54 billion at the end of 2012. Long-term debt was $1.13
billion. Debt-to-capitalization ratio was 42.7% compared with
41.6% in the prior-year quarter. Shareowner's equity was $1.5
billion at the end of the quarter.
Waters Corporation continues to see considerable stability in
its end markets and continued momentum in the acceptance of new
products. However, the analytical instrument and systems market
is highly competitive. Waters carries a Zacks Rank #3 (Hold).
Other companies worth considering at the moment and which
operate in the same industry include
Logitech International S.A
). All three carry Zacks Rank #2 (Buy).
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WATERS CORP (WAT): Free Stock Analysis Report
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