Waters Corp. Reports Strong Growth in Q4 2024

By Tamara Parker • Wednesday, February 12 10:19 • Permanent Link

Waters Corporation (NYSE: WAT) has released its financial results for the fourth quarter and full-year 2024, showcasing significant growth and performance. In the fourth quarter of 2024, sales amounted to $873 million, marking a 6% increase from the same period in 2023. Notably, instruments grew by 8% and recurring revenue by 9% in constant currency, with the pharma segment exhibiting a robust 10% growth in constant currency.

The company's GAAP EPS for the fourth quarter of 2024 stood at $3.88, a positive increase from $3.65 in the same period in 2023. Meanwhile, non-GAAP EPS surged by a substantial 13% to $4.10, up from $3.62 in the fourth quarter of 2023. This impressive growth is attributed to strong operational performance and better-than-expected sales volume, effectively offsetting foreign exchange headwinds.

Looking at the full-year 2024, sales exceeded guidance, reaching $2,958 million, remaining flat as reported and in organic constant currency. However, the company managed to achieve a GAAP operating income margin of 27.9%, with operational excellence driving adjusted operating income margin expansion to 31.0%. Consequently, Waters Corporation reported GAAP EPS of $10.71 and non-GAAP EPS of $11.86, marking a 1% increase over 2023.

In terms of cash flow, the company generated $762 million in operating cash flow and $744 million in free cash flow, representing 25% of full-year sales and a free cash flow to adjusted net income ratio of 105%.

Dr. Udit Batra, President & CEO of Waters Corporation, expressed satisfaction with the results, highlighting the double-digit growth in the pharma segment and the acceleration of growth across all regions. Sales into the pharmaceutical market increased by 8% as reported and 10% in constant currency, reflecting the company's strong performance in this crucial segment.

Looking ahead, Waters Corporation has provided financial guidance for the full-year 2025, expecting constant currency sales growth to be in the range of +4.5% to +7.0%, with non-GAAP EPS projected to be in the range of $12.70 to $13.00.

These results demonstrate Waters Corporation's sustained growth and operational excellence, positioning the company for continued success in the future. Today the company's shares have moved -8.6% to a price of $370.24. Check out the company's full 8-K submission here.

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