Waters Q3 Beats Market, Issues Q4 View; Lifts FY24 Outlook

(RTTNews) - Waters Corp. (WAT), while reporting higher third-quarter results, above market estimates, on Friday issued fourth-quarter outlook, and lifted fiscal 2024 forecast.

For the fourth quarter, the analytical instruments and software provider expects adjusted earnings per share to be in the range of $3.90 to $4.10.

Analysts on average expect the company to report earnings of $4.09 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company expects sales growth in the range of 3.3 percent to 5.3 percent, and constant currency sales growth to be in the range of 5.0 percent to 7.0 percent.

Further, for fiscal 2024, the company now expects adjusted earnings per share to be in the range of $11.67 to $11.87, higher than previous estimate of $11.55 to $11.65. The Street is looking for earnings of $11.60 per share for the year.

Waters further expects annual sales to decline in the range of 0.8 percent to 0.2 percent, compared to previously expected decline of of 2.2 to 0.7 percent.

On an organic constant currency basis, sales would now drop 0.9 percent to -0.3 percent, while previous estimate was a decline of 2.0 to 0.5 percent.

In its third quarter, Waters' earnings increased from last year and beat the Street estimates.

The company's bottom line came in at $161.50 million, or $2.71 per share. This compares with $134.55 million, or $2.27 per share, in last year's third quarter.

Adjusted earnings were $174.30 million or $2.93 per share for the period, compared to $168.55 million or $2.84 per share last year. Analysts expected the company to earn $2.68 per share.

The company's revenue for the quarter rose 4.0 percent to $740.31 million from $711.69 million last year. Analysts expected revenues of $713.02 million.

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