WAT Earnings & Sales Surpass Estimates in Q4, Shares Rise

Waters Corporation WAT shares rose 0.74% in the after-hours trading as it reported fourth-quarter 2024 non-GAAP earnings of $4.10 per share, beating the Zacks Consensus Estimate by 1.99%. The company had registered earnings of $3.62 in the year-ago quarter, increasing 13.3% on a year-over-year basis.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Net sales of $872.7 million topped the Zacks Consensus Estimate of $857 million. The figure increased 6.5% on a reported basis and grew 8% on a constant-currency basis from the year-ago quarter.Waters delivered a strong fourth quarter, driven by double-digit growth in the Pharma segment, while both instrument sales and recurring revenue posted high-single-digit gains in constant currency. Growth rebounded across all major regions — Asia, the Americas and Europe — led by the strong adoption of new products and the successful execution of strategic initiatives.Waters Corporation Price, Consensus and EPS Surprise  Waters Corporation price-consensus-eps-surprise-chart | Waters Corporation QuoteWAT’s Top Line in DetailWaters’ net sales figure can be categorized in four ways:Operating Segment: WAT operates under two organized segments — Waters and TA.The Waters segment (87.6% of net sales) generated sales worth $764.3 million, up 6.6% year over year. Sales in the TA segment were $108.4 million (12.4% of net sales), reflecting 5.7% year-over-year growth.Products & Services: The division comprises three segments — Instruments, Services and Chemistry.Instruments sales (48.1% of net sales) were $419.6 million, increasing 5.6% on a year-over-year basis.Services sales (34.6% of net sales) were $301.8 million, climbing 8.2% year over year.Chemistry sales (17.3% of net sales) were $151.3 million, growing 5.5% year over year.The Services and Chemistry segments jointly generated recurring revenues of $453.1 million, up 7.3% year over year.Markets: Waters serves three end markets — Pharmaceutical, Industrial, and Governmental and Academic.The Pharmaceutical market (57.2% of net sales) generated sales of $498.8 million, which increased 7.6% on a year-over-year basis.The Industrial market’s (30.3% of net sales) sales were $264 million, up 1.5% year over year.The Governmental and Academic market (12.6% of net sales) generated $109.9 million in sales, which rose 15% year over year.Geography: Waters’ operating regions include Asia, the Americas and Europe.Asia (31.3% of net sales) generated $272.9 million in sales, up 4.2% on a year-over-year basis.Sales in the Americas (36.8% of net sales) were $321 million, increasing 5.7% year over year.Europe (31.9% of net sales) generated $278.8 million in sales, up 9.8% year over year.WAT’s Operating DetailsIn the fourth quarter, non-GAAP selling and administrative expenses were $168.5 million, down 2.6% year over year. As a percentage of net sales, the figure contracted 180 basis points (bps) on a year-over-year basis.Research and development spending of $46.3 million increased 8.9% year over year. As a percentage of net sales, the figure expanded 10 bps year over year.The adjusted operating margin was 35.5%, which increased by 60 bps year over year.Waters’ Balance Sheet & Cash FlowAs of Dec. 31, 2024, cash, cash equivalents and investments were $325.4 million, down from $331.5 million as of Sept. 28, 2024.Waters generated cash from operations of $240.1 million in the reported quarter, up from $204.6 million in the prior quarter.The company recorded a free cash flow of $188 million in the fourth quarter.WAT Initiates Q1 & 2025 GuidanceFor the first quarter of 2025, Waters expects non-GAAP earnings of $2.17-$2.25 per share.The Zacks Consensus Estimate for earnings is pegged at $2.47, unchanged over the past 30 days, indicating 11.76% growth from the figure reported in the year-ago quarter.Management anticipates organic sales to grow 4-7% on a constant-currency basis. WAT projects 3% lower sales growth due to the impacts of foreign exchange fluctuations.On a reported basis, total sales growth is predicted to be 1-4%.The Zacks Consensus Estimate for revenues is pegged at $678.85 million, suggesting 6.60% year-over-year growth.For 2025, Waters anticipates non-GAAP earnings of $12.70-$13.00 per share. The Zacks Consensus Estimate for earnings is pegged at $12.80, down 8 cents over the past 30 days, indicating an 8.52% decline from the figure reported in 2023.Waters projects 2024 organic sales to increase 4.5-7% on a constant-currency basis. WAT projects sales growth to be affected by 2% due to unfavorable foreign exchange fluctuations.On a reported basis, total sales are projected to grow 2.5-5%.The Zacks Consensus Estimate for revenues is pegged at $3.10 billion, indicating year-over-year growth of 5.48%.Waters Zacks Rank & Stocks to ConsiderCurrently, Waters carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the broader medical market sector are Alnylam Pharmaceuticals ALNY, AdaptHealth AHCO and Outset Medical OM, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Alnylam Pharmaceuticals shares have gained 13% in the year-to-date period. ALNY’s long-term earnings growth rate is projected at 32.56%.AdaptHealth shares have declined 6% in the year-to-date period. The long-term earnings growth rate for AHCO is anticipated at 8.13%.Outset Medical shares have lost 29.7% in the year-to-date period. OM’s long-term earnings growth rate is estimated to be 25.07%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Alnylam Pharmaceuticals, Inc. (ALNY): Free Stock Analysis Report Waters Corporation (WAT): Free Stock Analysis Report AdaptHealth Corp. (AHCO): Free Stock Analysis Report Outset Medical, Inc. (OM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks