Waters Corp. (WAT) Q4 Earnings and Revenues Trump Estimates

A generic image of chart
Credit: Shutterstock photo

Milford, Massachusetts-based Waters CorporationWAT is a prominent medical instrument supplying firm, conducting trade in the healthcare sector. The company is renowned analytical instrument producer but also builds up and supplies software-based products to its customers.

WAT's global pharmaceuticals business, its largest single market and major revenue driver, is the company's major profit churner fuelling its growth. Waters Corp.'s solid market presence in both high-performance liquid chromatography market and mass spectrometry markets, strength in regulated testing, non-discretionary product demand are its staple growth drivers.

Also, the company's robust product portfolio supplements its strength. Thriving life sciences and analytical instrument markets, accelerated drug approvals by the FDA and favorable funding environment bode well for the company's future growth.

Despite the positives, Waters Corp.'s debt levels and the consequent interest expenses remain a burden, given its recent acquisitions. Also, rising R&D expenses, currency fluctuations and volatility in client spending add to the company's woes.

In the last quarter, Waters Corp. had posted in line earnings. The company boasts a solid earnings track record, having beaten estimates thrice in the trailing four quarters. The average earnings surprise over the last four quarters is a positive 3%.

Waters Corporation Price and EPS Surprise

Waters Corporation Price and EPS Surprise | Waters Corporation Quote

Currently, WAT has a Zacks Rank #4 (Sell) but that could change following its fourth-quarter 2016 earnings report which has just released. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key details from the just-released announcement below:

Earnings: WAT beat on earnings. Adjusted earnings per share came in at $2.21, significantly higher than the Zacks Consensus Estimate of $2.13.

Revenue: Revenues of $629 million came ahead of the Zacks Consensus Estimate of $617 million.

Key Stats: Waters witnessed robust sales growth in Asia and Europe. Also, strong market traction in the bio/pharmaceutical end markets drove the impressive results.

Stock Price: WAT shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on this WAT earnings report later!

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?

Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Waters Corporation (WAT): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

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

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

In This Story


Other Topics

Earnings Investing Stocks

Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More