) reported net income of $98.0 million or $1.14 a share in the
third quarter of 2013 compared with $99.1 million or $1.12 a
share in the year-earlier quarter. The reported earnings missed
the Zacks Consensus Estimate of $1.22 by 2.4%.
The year-over-year growth in earnings per share was driven by
increased demands in the government and academic sectors along
with a lower share count in the quarter.
Excluding non-recurring items, the EPS for the quarter was
$1.19 per share compared with $1.18 in the year-ago quarter.
Total revenue in the third quarter increased 1.6% year on year
to $457.3 million. However, it missed the Zacks Consensus
Estimate of $463 million by 1.3%. Unfavorable currency
translation impacted the top line by 2%.
Gross profit for the quarter was $265.7 million, which was
down marginally by 0.5% from $267.2 million reported in the
prior-year quarter. Gross margins for the quarter were down to
58.1% from 59.4% in the prior-year quarter. The decline was
primarily attributable to unfavorable currency translation and
the sluggish performance of the company's pharmaceutical business
despite improvement in global business conditions across the
Operating income for the quarter stood at $119.1 million,
which declined 2.13% from $121.7 million in the third quarter of
2012. The company incurred total SG&A expense of
approximately $120.6 million in the quarter, an increase of 4.5%
year over year. R&D expense was around $23.6 million in the
quarter versus $23.8 million in the prior-year quarter. Operating
margin was down from 27.0% to 26.1% year over year.
Exiting the quarter, cash, cash equivalents and investments
reached approximately $1.7 billion compared with $1.5 billion in
last year's same quarter. Long-term debt was $1.2 billion.
Debt-to-capitalization ratio was 41.7% compared with 41.6% in the
Waters Corporation continues to see considerable stability in
its end markets and a healthy acceptance of new products.
However, the analytical instrument and systems market remains
Waters Corporation currently carries a Zacks Rank #3 (Hold).
Some other favorably ranked companies from the same industry
Mettler-Toledo International Inc.
Logitech International S.A
). All three carry Zacks Rank #2 (Buy).
LOGITECH INTL (LOGI): Free Stock Analysis
METTLER-TOLEDO (MTD): Free Stock Analysis
STRATASYS LTD (SSYS): Free Stock Analysis
WATERS CORP (WAT): Free Stock Analysis Report
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