Waters Corp Earnings Cheat Sheet: Profits Grow by Double Digits For Fifth Straight Quarter

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

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Waters Earnings Cheat Sheet for the Second Quarter

Results: Net income for Waters Corporation rose to $100.1 million ($1.07 per share) vs. $84.9 million (90 cents per share) in the same quarter a year earlier. This marks a rise of 17.8% from the year earlier quarter.

Revenue: Rose 14.5% to $447.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: WAT reported adjusted net income of $1.08 per share. By that measure, the company fell short of mean estimate of $1.14 per share. Analysts were expecting revenue of $450.9 million.

Quoting Management: Commenting on the quarter, Douglas Berthiaume, Chairman, President and Chief Executive Officer said, “Strong Asian sales and positive customer acceptance of our new product offerings highlighted Waters quarterly performance. Overall business trends in the quarter suggest solid underlying demand and continued support for our current product and market initiatives.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 25.1% and in the fourth quarter of the last fiscal year, the figure rose 21.6%.

Revenue has risen the past four quarters. Revenue increased 16.3% to $427.6 million in the first quarter. The figure rose 12.8% in the fourth quarter of the last fiscal year from the year earlier and climbed 7.2% in the third quarter of the last fiscal year from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 8 cents, and in the fourth quarter of the last fiscal year, it was ahead by 7 cents.

Gross margins grew 0.3 percentage point to 60.7%. The growth seemed to be driven by increased revenue, as the figure rose 14.5% from the year earlier quarter while costs rose 13.5%.

Competitors to Watch: Bruker Corporation (NASDAQ:BRKR), Dionex Corporation (NASDAQ:DNEX), Transgenomic, Inc. (TBIO), Beckman Coulter, Inc. (NYSE:BEC), PerkinElmer, Inc. (NYSE:PKI), Thermo Fisher Scientific Inc. (NYSE:TMO), Bio-Rad Laboratories, Inc. (NYSE:BIO), Harvard Bioscience, Inc. (NASDAQ:HBIO), Cepheid (NASDAQ:CPHD), and Mettler-Toledo Intl. Inc. (NYSE:MTD).

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(Source: Xignite Financials)