Impressive Q3 Results for Waters Corporation

By Bobby Samwell • Friday, November 01 10:25 • Permanent Link

Waters Corporation (NYSE: WAT) has reported its financial results for the third quarter of 2024, and the numbers are quite impressive. Sales for the third quarter of 2024 were $740 million, representing a 4% increase compared to the same period in 2023. This growth was consistent across all reported regions, with sales increasing across all end markets, led by a notable performance in the pharma & industrial sector.

The company's GAAP EPS for the third quarter of 2024 was $2.71, a significant increase from $2.27 in the third quarter of 2023. On a non-GAAP basis, EPS was $2.93, compared to $2.84 for the same period in 2023. Despite facing a headwind of approximately 2% due to unfavorable foreign exchange, these figures exceeded the guidance, driven by strong operational performance and better-than-expected market conditions.

In terms of market performance, sales into the pharmaceutical market increased 2% as reported and 3% in constant currency, while sales into the industrial market saw a substantial 9% increase as reported and 7% in constant currency. Additionally, sales into the academic and government market increased 2% as reported and remained flat in constant currency.

Geographically, sales in Asia increased by 5% as reported and 6% in constant currency, while sales in the Americas and Europe also experienced growth, increasing by 1% and 6% as reported, respectively.

Looking ahead, the company has raised its full-year sales and EPS guidance, with 5% to 7% constant currency growth expected in the fourth quarter of 2024. It is also worth noting that the company's full-year 2024 sales guidance has been raised, and organic constant currency sales growth is now expected to be in the range of -0.9% to -0.3%, with M&A contribution from the Wyatt transaction covering the first four-and-a-half months of the year, adding 1.3% to full-year reported sales.

Finally, for the fourth quarter of 2024, the company expects constant currency sales growth to be in the range of +5.0% to +7.0%, with non-GAAP EPS projected to be in the range of $3.90 to $4.10, including an estimated headwind of approximately 3% due to unfavorable foreign exchange.

Following these announcements, the company's shares moved 16.9%, and are now trading at a price of $377.75. If you want to know more, read the company's complete 8-K report here.

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