Waters to Enhance Shareholders' Wealth - Analyst Blog

By Zacks Equity Research,

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In its efforts to share more profits with shareholders, Waters Corporation ( WAT ) revealed that its board of directors authorized the repurchase of up to $750 million of the company's common stock over a period of three years. Its prior repurchase authorization expired in May 2014.

Following the filing on May 15, shares of the company rose 1.4% to close at $103.01 on Friday. However, the momentum could not be maintained and the shares closed lower at $102.06 on May 19.

The previous share repurchase program was initiated in May 2012, when the board of directors authorized the repurchase of shares worth up to $750 million. In the two-year period, the company repurchased shares worth $529 million. Per the filing, the board of directors extended the earlier program to May 15, 2015 to allow the company to repurchase the remaining balance.

Waters Corporation, a Zacks Rank #3 (Hold) stock, reported fourth-quarter non-GAAP earnings of $1.70 a share, up 6.9% year over year from $1.59. The reported earnings also surpassed the Zacks Consensus Estimate of $1.61 by 5.6%.

Revenues for the quarter also increased a strong 8.4% year on year to $565.4 million. Revenues also comprehensively surpassed the Zacks Consensus Estimate of $534 million by almost 5.9%. Unfavorable currency translation impacted the top line by 2%.

The decision reflects the company's positive outlook for the future as it continues to see considerable stability in its end markets and a healthy acceptance of new products. In addition, fair pricing of products and its cost-control efforts are helping the company to deliver stable profitability.

Some other favorably ranked companies from the sector include Mettler-Toledo International Inc. ( MTD ), Synaptics Inc. ( SYNA ) and PerkinElmer Inc. ( PKI ). All three carry a Zacks Rank #2 (Buy).

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METTLER-TOLEDO (MTD): Free Stock Analysis Report

PERKINELMER INC (PKI): Free Stock Analysis Report

SYNAPTICS INC (SYNA): Free Stock Analysis Report

WATERS CORP (WAT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: MTD , PKI , SYNA , WAT

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