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Waters (WAT) to Report Q4 Earnings: What's in the Offing?

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Waters Corporation (WAT - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 15.

For the fourth quarter, Waters anticipates net sales growth of 6-8% on a constant-currency basis. The Zacks Consensus Estimate for net sales is pegged at $831.29 million, indicating a fall of 0.6% from the year-ago quarter’s reported figure.

WAT expects non-GAAP earnings between $3.66 and $3.76 per share. The Zacks Consensus Estimate for the same is pegged at $3.74 per share, suggesting growth of 1.9% from the year-ago quarter’s reported figure.

Waters’ earnings beat estimates in all the trailing four quarters, the average being 8.4%.

Waters Corporation Price and EPS Surprise

 

Waters Corporation Price and EPS Surprise

Waters Corporation price-eps-surprise | Waters Corporation Quote

Factors to Consider

Waters’ strong investments in liquid chromatography instruments, mass spectrometers and chemistries are anticipated to have contributed to its performance in the large molecule market in the to-be-reported quarter.

Waters’ robust liquid chromatography-mass spectrometry solution, named BioAccord, is expected to have continued benefiting its quarterly performance.

The company’s fourth-quarter results are likely to reflect benefits of solid momentum across the pharmaceutical, industrial, academic and government end markets.

Growing momentum across biomedical research applications is also expected to have contributed well.

Growing efforts toward expanding the product portfolio across instruments, consumables and informatics are expected to have driven WAT’s performance in the highlighted quarter.

Strength in Arc HPLC and ACQUITY Premier instruments, and MAX peak premier columns is expected to have consistently benefited its top line in the quarter under review.

Waters is expected to have continued performing well in Asia and the Americas in the quarter under discussion.

However, the impacts of uncertainties related to the ongoing coronavirus pandemic are expected to get reflected in the upcoming quarterly results. The pandemic-induced lockdown in China is likely to have been a headwind.

Unfavorable foreign exchange fluctuations, increasing expenses, supply-chain constraints and inflationary pressures are expected to have affected WAT’s 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, which is exactly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Waters has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Grid Dynamics (GDYN - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Grid Dynamics is scheduled to release its fourth-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for GDYN’s earnings is pegged at 11 cents per share, suggesting an increase of 10% from the prior-year quarter’s reported figure.

Endava (DAVA - Free Report) has an Earnings ESP of +1.47% and a Zacks Rank #2 at present.

Endava is set to report its second-quarter fiscal 2023 results on Feb 14. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.94% from the prior-year period’s reported figure.

DraftKings (DKNG - Free Report) has an Earnings ESP of +2.49% and a Zacks Rank #3 at present.

DraftKings is scheduled to release its fourth-quarter 2022 results on Feb 16. The Zacks Consensus Estimate for DKNG’s loss is pegged at 63 cents per share. The company reported a loss of 80 cents per share in the prior-year quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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