Waters (WAT) Q1 Earnings Beat Estimates, Revenues Rise Y/Y

Waters Company WAT has reported first-quarter 2021 non-GAAP earnings of $2.29 per share, which surpassed the Zacks Consensus Estimate by 45.9%. Additional, the underside line improved 99% on a year-over-year foundation however declined 37.3% sequentially.

Internet gross sales of $608.5 million beat the Zacks Consensus Estimate of $522.2 million. The determine was up 31% from the year-ago quarter on a reported foundation and 72% on a constant-currency foundation. Nevertheless, it was down 22.6% from the earlier quarter.

Prime-line progress was pushed by robust efficiency in Asia, the Americas and Europe. Additional, strong momentum throughout pharmaceutical and industrial end-markets contributed properly. Moreover, the robust efficiency delivered by the Waters and TA segments was a constructive.

Furthermore, favorable overseas foreign money fluctuations contributed 4% to gross sales progress within the reported quarter.

Waters Company Worth, Consensus and EPS Shock

Waters Company price-consensus-eps-surprise-chart | Waters Company Quote

Prime Line in Element

The corporate’s web gross sales determine will be categorized in 4 methods:

By Working Section: It operates in two organized segments — Waters and TA.

The Waters section (89% of web gross sales) generated $541.9 million of gross sales, up 31% from the year-ago quarter. Gross sales within the TA section had been $66.7 million(11% of web gross sales), which mirrored year-over-year progress of 31%.

By Merchandise & Providers: The division includes three segments — Devices, Providers and Chemistry.

Devices gross sales (43.2% of gross sales) had been $263.05 million, up 49% on a year-over-year foundation.

Service gross sales (37.2% of the gross sales) had been $226.5 million, rising 19% 12 months over 12 months.

Chemistry gross sales (19.6% of the gross sales) had been $118.9million, up 22% from the year-ago quarter.

Furthermore, service and chemistry segments collectively generated recurring revenues of $345.5 million, up 20% from the year-ago quarter.

By Markets: The corporate serves three finish markets — Pharmaceutical, Industrial, and Governmental & Educational.

The Pharmaceutical market (59.2% of web gross sales) generated gross sales of $360.15 million, which elevated 32% on a year-over-year foundation.

The Industrial market’s (30.1% of gross sales) gross sales had been $183.Three million, up 28% from the year-ago quarter.

Governmental & Educational (10.7% of gross sales) generated $65.1million of gross sales. The determine improved 33% 12 months over 12 months.

By Geography: The corporate’s working areas embody Asia, the Americas and Europe.

Asia (38% of web gross sales) generated $229.5 million of gross sales, up 44% on a year-over-year foundation.

The Americas (32% of gross sales) generated $197.Four million of gross sales, rising 15% 12 months over 12 months. Notably, gross sales in america elevated 4% 12 months over 12 months.

Europe (30% of gross sales) generated $181.6 million of gross sales, up 36% from the prior-year quarter.

Working Particulars

Within the first quarter, non-GAAP promoting and administrative bills had been $142.3million, reflecting a rise of 11.9% from the year-ago quarter. As a share of web gross sales, the determine contracted 400 foundation factors (bps) 12 months over 12 months.

Analysis and improvement spendingwas $38.1 million, indicating an increase of 8.9% from the year-ago reported determine. As a share of web gross sales, the determine contracted 120 bps 12 months over 12 months.

Adjusted working margin was 28.6%, which expanded880 foundation factors (bps) 12 months over 12 months.

Steadiness Sheet & Money Circulate

As of Apr 3, 2021, money, money equivalents and investments had been $809.Eight million, greater than $443.1 million as of Dec 31, 2020.

Additional, accounts receivables stood at $550.7 million on the finish of the primary quarter, which was down from $573.Three million on the finish of the final reported quarter.

Waters generated money from operation of $218.Four million within the reported quarter, down from $267.5 million within the prior quarter.

Additional, it recorded free money circulation of $193.Four million within the firstquarter.

Steerage

For second-quarter 2021, Waters expects non-GAAP earnings of$2.15-$2.25.per share. The Zacks Consensus Estimate for earnings is pegged at $2.05.

The corporate anticipates web gross sales progress between 14% and 16% on a constant-currency foundation. The Zacks Consensus Estimate for gross sales is presently pegged at $592.5 million.

For 2021, Waters anticipates non-GAAP earnings of$9.85-$10.05 per share. The Zacks Consensus Estimate for 2021 earnings is pegged at $9.54 per share.

Additional, the corporate expects 2021 web gross sales progress of 8-11% on a constant-currency foundation. The Zacks Consensus Estimate for a similar is pegged at $2.56 billion.

Zacks Rank & Different Shares to Take into account

Waters presently carries a Zacks Rank #2 (Purchase). 

Another top-ranked shares within the broader expertise sector value consideration are Agilent Applied sciences A, Microchip MCHP and NVIDIA NVDA. All of the shares carry a Zacks Rank #2 (Purchase). You possibly can see the entire record of in the present day’s Zacks #1 Rank (Sturdy Purchase) shares right here.

Lengthy-term earnings progress charge of Agilent, Microchip and NVIDIA is pegged at 9%, 15.5% and 15.1%, respectively.

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