We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Waters Corp (WAT) Up 7.3% Since Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for Waters Corporation (WAT - Free Report) . Shares have added about 7.3% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Waters Corp. Q4 Earnings Beat on Top-Line Strength
Waters Corp.'s reported fourth-quarter 2016 adjusted earnings of $2.21 per share, which surpassed the Zacks Consensus Estimate of $2.12 by 4.3%.The bottom-line figure fared even better in year-over-year comparison, reflecting a striking growth of 12.8% from the prior-year quarter tally of $1.96. Remarkable, broad-based top-line expansion along with growth in Asia and Europe, aided the earnings beat.
Solid operational execution backed by the company’s efficient business model also lent strength to the results. Further, a decline in interest expenses aided quarterly profits.
For full-year 2016, adjusted earnings came in at $6.62, reflecting an increase of 12% over 2015.
Inside the Headlines
In the reported quarter, Waters Corp.’s net sales grew 7% year over year to $629 million and also came ahead of the Zacks Consensus Estimate of $617 million.
The upside in the top line came on the back of robust performance in the industrial end markets (up 14% on a constant currency basis). Further, the bio/pharmaceutical end market and the government & academic market (both up 6% on a constant currency basis) also drove the overall top-line growth.
Also, impressive contribution from sale of key products across major geographies supplemented quarterly sales growth. In addition, Water Corp.’s recurring revenues and instrument system sales grew 8% and 9%, respectively, driving top-line growth.
In terms of geographies, Waters Corp. witnessed strong sales in Asia and Europe, which posted 16% and 9% growth at constant currency. Sales in the U.S. also rose 2% year over year.
For full-year 2016, sales for the company came in at $2,167 million, up around 6% from 2015 revenues.
Total selling and administrative expenses in the quarter came in at $130.2 million, up from $128.7 million in fourth-quarter 2015. Research and development outlay for the quarter was $32.8 million, compared with $28.3 million incurred a year ago.
Despite the rise in these expenses, operating income in the quarter climbed 14.9% year over year to $208.3million.
Liquidity
Waters Corp.’s cash, cash equivalents and investments amounted to approximately $2.8 billion, higher than $2.4 billion as on Dec 31, 2015. The company’s total liabilities at quarter end increased to about $2.4 billion from $2.2 billion as on Dec 31, 2015.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. There have been five revisions lower for the current quarter.
At this time, Waters Corp's stock has an average Growth Score of 'C', though it is lagging a lot on the momentum front with an 'F'. Charting a somewhat similar path, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregte VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for growth based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Notably the stock has a Zacks Rank # 3(Hold). We are expecting an inline return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Waters Corp (WAT) Up 7.3% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Waters Corporation (WAT - Free Report) . Shares have added about 7.3% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Waters Corp. Q4 Earnings Beat on Top-Line Strength
Waters Corp.'s reported fourth-quarter 2016 adjusted earnings of $2.21 per share, which surpassed the Zacks Consensus Estimate of $2.12 by 4.3%.The bottom-line figure fared even better in year-over-year comparison, reflecting a striking growth of 12.8% from the prior-year quarter tally of $1.96. Remarkable, broad-based top-line expansion along with growth in Asia and Europe, aided the earnings beat.
Solid operational execution backed by the company’s efficient business model also lent strength to the results. Further, a decline in interest expenses aided quarterly profits.
For full-year 2016, adjusted earnings came in at $6.62, reflecting an increase of 12% over 2015.
Inside the Headlines
In the reported quarter, Waters Corp.’s net sales grew 7% year over year to $629 million and also came ahead of the Zacks Consensus Estimate of $617 million.
The upside in the top line came on the back of robust performance in the industrial end markets (up 14% on a constant currency basis). Further, the bio/pharmaceutical end market and the government & academic market (both up 6% on a constant currency basis) also drove the overall top-line growth.
Also, impressive contribution from sale of key products across major geographies supplemented quarterly sales growth. In addition, Water Corp.’s recurring revenues and instrument system sales grew 8% and 9%, respectively, driving top-line growth.
In terms of geographies, Waters Corp. witnessed strong sales in Asia and Europe, which posted 16% and 9% growth at constant currency. Sales in the U.S. also rose 2% year over year.
For full-year 2016, sales for the company came in at $2,167 million, up around 6% from 2015 revenues.
Total selling and administrative expenses in the quarter came in at $130.2 million, up from $128.7 million in fourth-quarter 2015. Research and development outlay for the quarter was $32.8 million, compared with $28.3 million incurred a year ago.
Despite the rise in these expenses, operating income in the quarter climbed 14.9% year over year to $208.3million.
Liquidity
Waters Corp.’s cash, cash equivalents and investments amounted to approximately $2.8 billion, higher than $2.4 billion as on Dec 31, 2015. The company’s total liabilities at quarter end increased to about $2.4 billion from $2.2 billion as on Dec 31, 2015.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. There have been five revisions lower for the current quarter.
Waters Corporation Price and Consensus
Waters Corporation Price and Consensus | Waters Corporation Quote
VGM Scores
At this time, Waters Corp's stock has an average Growth Score of 'C', though it is lagging a lot on the momentum front with an 'F'. Charting a somewhat similar path, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregte VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for growth based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Notably the stock has a Zacks Rank # 3(Hold). We are expecting an inline return from the stock in the next few months.