Waters (WAT) Q2 Earnings Beat On Broad-Based Sales Growth
Zacks Investment Research | Jul 24, 2017 10:04PM ET
Waters Corporation (NYSE:WAT) has a brilliant earnings beat streak, spanning 11 quarters of positive earnings surprises, which the company broke with in-line earnings in one of the quarters last year. In second-quarter 2017, Waters Corp. continued its impressive streak, as the company’s adjusted earnings of $1.76 per share trumped the Zacks Consensus Estimate of $1.72 by 2.3%.
The bottom-line figure fared even better in year-over-year comparison, reflecting striking growth of 11.4% from the prior-year quarter tally of $1.58. Remarkable broad-based top-line expansion, along with spectacular growth in Asia, 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.
Inside the Headlines
In the reported quarter, Waters Corp.’s net sales grew 4% year over year to $558 million and also came ahead of the Zacks Consensus Estimate of $552.9 million.
The upside in the top line came on the back of robust performance in the industrial end markets (up 7% on a constant currency basis) and the bio/pharmaceutical end market (up 4% on a constant currency basis). The momentum was further aided by growth of 5% (on a constant currency basis) in the government and academic markets.
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 5% and 3%, respectively, driving top-line growth.
In terms of geographies, Waters Corp. witnessed strong sales in Asia and Europe, which posted 14% and 5% growth, respectively, at constant currency. However, sales in the Americas continued to reflect weakness and declined 3% year over year.
Total selling and administrative expenses in the quarter came in at $130.2 million, up from $129.6 million incurred in second-quarter 2016. Research and development outlay for the quarter was $32.9 million compared with $32.6 million incurred a year ago.
Despite the rise in these expenses, operating income in the quarter climbed 1.4% year over year to $118.9 million.
Waters Corporation Price, Consensus and EPS Surprise
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.