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Waters (WAT) to Report Q3 Earnings: What's in the Cards?

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Waters Corporation (WAT - Free Report) is scheduled to report third-quarter 2021 results on Nov 2.

For the third quarter, it expects non-GAAP earnings between $2.25 and $2.35 per share. The Zacks Consensus Estimate for the same is pegged at $2.34 per share, suggesting growth of 8.3% from the year-ago reported figure.

Further, the company expects net sales growth between 7% and 9% on a constant currency basis. The consensus mark for third-quarter revenues stands at $652.28 million, implying a 9.9% improvement from the prior-year reported value.

It surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 25.6%.

Waters Corporation Price and EPS Surprise

Waters Corporation Price and EPS Surprise

Waters Corporation price-eps-surprise | Waters Corporation Quote

Key Factors to Note

Increasing investments in liquid chromatography instruments, mass spectrometers and chemistries are likely to have benefited Waters’ third-quarter performance.

Improvement in all major geographies is anticipated to have remained a positive factor for the company.

Solid momentum across pharmaceutical and industrial end markets is likely to have continued contributing to the top line in the quarter under discussion.

Also, strength in ACQUITY PREMIER Columns and System might have persistently contributed to its top line during the quarter under review.

Further, growing customer momentum for newer instruments is expected to have remained a tailwind.

The company’s robust liquid chromatography-mass spectrometry solution named BioAccord is expected to have aided its performance in the to-be-reported quarter.

During the third quarter, the company introduced the Waters BioAccord System with ACQUITY Premier for seamless monitoring of attributes of biotherapeutics. This is likely to have remained another positive.

In addition, the TA Instrument division’s strength across all major geographies and product lines is anticipated to have continued aiding its performance in the to-be-reported quarter.

Yet, uncertainties related to the ongoing coronavirus pandemic might get reflected in the upcoming quarterly results.

Further, increasing operating expenses owing to higher labor costs are expected to have affected its quarterly performance.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Waters this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

It has an Earnings ESP of -1.10% and a Zacks Rank #4 (Sell), at present.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Trimble (TRMB - Free Report) has an Earnings ESP of +3.64% and a Zacks Rank of 2, at present.

HP (HPQ - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank of 1, at present

Agilent (A - Free Report) has an Earnings ESP of +0.61% and a Zacks Rank of 3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.


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