Waters Corp. Q3 Beats Street, Sees Q4 Below Market, Lifts FY25 Outlook

(RTTNews) - Waters Corp. (WAT), a provider of analytical instruments, separations technologies, and software, on Tuesday reported weak profit in its third quarter, while adjusted earnings and top line beat market estimates.

Further, the firm issued fourth-quarter earnings outlook below the Street, but raised fiscal 2025 outlook above the market view.

In the pre-market activity on the NYSE, the shares were losing around 0.2 percent to trade at $344.95.

For the fourth quarter, Waters expects adjusted earnings per share to be in the range of $4.45 to $4.55, which reflects year-over-year growth of approximately 9 percent to 11 percent.

The Wall Street analysts on average expect the company to report earnings of $4.59 per share. Analysts' estimates typically exclude special items.

Sales growth for the quarter is projected in the range of 5.2 percent to 7.2 percent on a reported basis and in the range of 5.0 percent to 7.0 percent on constant currency basis.

Further, for fiscal 2025, the company now expects adjusted earnings per share in the range of $13.05 to $13.15, reflecting year-over-year growth of around 10 percent to 11 percent.

The company previously expected earnings in the range of $12.95 to $13.05. The Street is looking for earnings of $12.99 per share for the year.

The firm now projects annual sales growth in the range of 6.5 percent to 7.1 percent on a reported basis and 6.7 percent to 7.3 percent on constant currency basis.

The previous outlook was sales growth in the range of 5.0 percent to 7.0 percent on a reported basis and 5.5 percent to 7.5 percent on constant currency basis.

In the third quarter, Waters' net income dropped to $148.92 million or $2.50 per share from prior year's $161.50 million or $2.71 per share.

Adjusted earnings were $202.90 million or $3.40 per share, compared to $174.30 million or $2.93 per share a year ago.

Analysts expected earnings of $3.20 per share for the quarter.

Net sales, however, grew 8 percent to $799.89 million from $740.31 million a year earlier. Sales increased 8 percent in constant currency.

Analysts estimated sales of $781.01 million for the quarter.

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