Waters Corp. Earnings: Bad Luck Continues

S&P 500 (NYSE:SPY) component Waters Corporation (NYSE:WAT) reported its results for the third quarter. Waters is an analytical instrument manufacturer that designs, manufactures, sells and services liquid chromatography, ultra performance liquid chromatography, mass spectrometry instrument systems, and support products.

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Waters Corporation Earnings Cheat Sheet

Results: Net income for Waters Corporation fell to $99.1 million ($1.12 per share) vs. $101.3 million ($1.10 per share) a year earlier. This is a decline of 2.1% from the year-earlier quarter.

Revenue: Fell 1% to $450 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Waters Corporation fell short of the mean analyst estimate of $1.16 per share. It fell short of the average revenue estimate of $459.3 million.

Quoting Management: Commenting on the quarter, Douglas Berthiaume, Chairman, President and Chief Executive Officer said, “Stable pharmaceutical demand and strong sales in Asia allowed us to organically grow our revenue in the third quarter despite challenging market conditions. At the same time, tight expense control, disciplined product pricing and a continuation of our share repurchase program resulted in adjusted earnings per share growth at a rate faster than sales.”

Key Stats:

For three quarters in a row, the company’s net income has fallen. In the second quarter, net income fell 2.3% from the year earlier, while the figure fell 6.2% in the first quarter.

The company has fallen short of estimates for two consecutive quarters. In the second quarter, it missed expectations by 9 cents with net income of $1 versus a mean estimate of net income of $1.09 per share.

Revenue fell last quarter after increasing in the previous quarter. Revenue rose 0.9% to $451.5 million in the second quarter from the year earlier.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.24 per share, down from $1.28 ninety days ago. At $5.07 per share, the average estimate for the fiscal year has fallen from $5.23 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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