) released its third-quarter 2012 earnings before the market
opened today, reporting earnings per share from continuing
operations of $1.18, in line with the Zacks Consensus Estimate.
Earnings in the quarter increased from $1.14 in the third quarter
of 2011. Earnings in the quarter benefited from the company's
initiatives to control expenses, maintain disciplined pricing and
On the top line, Waters reported total revenue of $450 million
for the third quarter, down 1% year over year. Foreign currency
translation had a negative impact of 3% on sales. Though a
difficult market condition was a challenge for the company,
top-line figures increased organically due to a stable
pharmaceutical demand and strong sales in Asia.
Operating income for the quarter amounted to $121.7 million
compared with $127.3 million in the third quarter of 2011. The
company incurred total SG&A expense of approximately $115.3
million in the quarter compared with $121.2 million. R&D
expense was around $23.8 million in the quarter versus $23.3
million in the prior-year quarter.
Cash, cash equivalents and short-term investments reached
approximately $1.45 billion at the end of the quarter compared
with $1.28 billion at the end of 2011. Long-term debt was $700.0
million and shareowner's equity was $1.33 billion at the end of
The company believes its strong competitive position and
strategic market initiatives will facilitate it to perform well
as it moves ahead.
Waters continues to see considerable stability in its end
markets and sustained continued momentum in the acceptance of new
products. The company continues to introduce new products.
However, the analytical instrument and systems market is highly
competitive. Major competitors of Waters are
Agilent Technologies Inc.
Life Technologies Corporation
Thermo Fisher Scientific Inc.
Waters Corporation, an analytical instrument manufacturer,
designs, manufactures, sells and services through its Waters
Division, high performance liquid chromatography, ultra
performance liquid chromatography (LC) and mass spectrometry (MS)
instrument systems and support products including chromatography
columns, other consumable products and comprehensive
post-warranty service plans.
We currently maintain our Neutral recommendation on Waters,
which carries a Zacks #3 Rank (short-term Hold rating) over the
next one-to-three months.
AGILENT TECH (A): Free Stock Analysis Report
LIFE TECHNOLOGS (LIFE): Free Stock Analysis
THERMO FISHER (TMO): Free Stock Analysis
WATERS CORP (WAT): Free Stock Analysis Report
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