Waters Earnings: Everything Investors Need to Know

Waters Corp. (NYSE:WAT) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Click here for our fresh Feature Stock Pick now!

Waters Corp. Earnings Cheat Sheet

Results: Net income increased 28.28% to $175.94 million ($1.59 per diluted share) in the quarter versus a net gain of $137.15 million in the year-earlier quarter.

Revenue: Rose 0.07% to $521.76 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Waters Corp. reported adjusted net income of $1.59 per share. By that measure, the company beat the mean analyst estimate of $1.58. It missed the average revenue estimate of $522.23 million.

Quoting Management:Douglas Berthiaume, Chairman, President and Chief Executive Officer said, “Demand trends in the fourth quarter were generally consistent with those observed throughout 2012. Our recurring revenues and business in Asia contributed to overall constant currency growth during a challenging period for the Company. For the full year, the combination of a stable pricing environment and prudent cost control allowed us to maintain our operating income level and grow our E.P.S. principally by reducing our share count through share repurchases.”

Key Stats:

Revenue increased 15.96% from $449.95 million in the previous quarter. Net income increased 77.52% from $99.11 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.14 to a profit $1.12. For the current year, the average estimate is a profit of $4.93, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials.)