Waters Earnings: Here’s Why Investors are Not Excited Now

Waters Corp. (NYSE:WAT) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4.69%.

Waters Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 7.69% to $1.08 in the quarter versus EPS of $1.17 in the year-earlier quarter.

Revenue: Decreased 0.1% to $451 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Waters Corp. reported adjusted EPS income of $1.08 per share. By that measure, the company missed the mean analyst estimate of $1.21. It missed the average revenue estimate of $466.4 million.

Quoting Management: Douglas Berthiaume, Chairman, President and Chief Executive Officer said, “A late-quarter unexpected slowdown in instrument system orders offset strong recurring revenue growth and contributed to an overall disappointing performance in the second quarter. We believe that underlying demand for instrument systems is, in fact, stronger than indicated by our weak sales growth in the quarter, as order delays and a meaningful backlog build combined in late June to negatively affect our sales and earnings.”

Key Stats (on next page)…

Revenue increased 4.8% from $430.34 million in the previous quarter. EPS increased 0.93% from $1.07 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 $1.28 to a profit $1.27. For the current year, the average estimate has moved down from a profit of $5.25 to a profit of $5.22 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)