Waters Corp reports results for the quarter ended September 30 - Earnings Summary

What happened

Waters Corp reported quarterly adjusted earnings of $4.10 per share, above analyst expectations of $4.00 and last year's $3.40. Revenue rose 120.9% to $1.77 billion, beating the $1.75 billion estimate. Reported earnings per share were 82 cents and net income was $81 million.

Confirmed

Global impact / market context

Higher adjusted earnings and revenue than analysts expected suggest Waters sold more equipment or services and controlled costs better than forecast. That can support the share price because profit beat expectations. Reported earnings of 82 cents is far below adjusted results, so one-time costs deserve a closer look.

Analyst inference

The average analyst rating is buy, with 18 buy or strong buy and 7 hold recommendations. The median 12-month price target is $470, about 4.4% above the last close of $449.53. These figures describe analyst views and price levels rather than realized trading.

Analyst inference

What to watch

1. Analyst earnings estimates fell about 0.2% over the last three months, though there were no negative revisions in the last 30 days, showing expectations were slightly trimmed before results. Confirmed
2. Investors could compare the $4.10 adjusted profit with the 82 cents reported profit to see which one-time costs, such as restructuring charges, separate them and whether those costs may repeat. Proposed
3. Because revenue rose 120.9% from a year ago, a large jump, watch whether future quarters keep that pace; if growth slows, the high share price may face pressure. Analyst inference

Evidence

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