Waters' (WAT) Earnings And Revenues Miss Estimates In Q1
Zacks Investment Research | Apr 22, 2019 10:52PM ET
Waters Corporation (NYSE:WAT) reported first-quarter 2019 non-GAAP earnings of $1.6 per share, missing the Zacks Consensus Estimate by 13 cents. The figure increased 0.6% on a year-over-year basis but declined 44.2% sequentially.
Net sales came in $513.9 million, lagging the Zacks Consensus Estimate of $545.5 million. Further, the figure was down 3% year over year and 28.1% from the previous quarter.
Lower-than-expected results can primarily be attributed to adverse effects of foreign exchange fluctuations and macro-economic headwinds in China and Europe.
Further, weak demand environment throughout the quarter especially in the pharmaceutical and industrial market due to sluggish customer spending affected the sales figure.
Coming to the price performance, shares of Waters have returned 5.9% over a year, underperforming the Waters Corporation Quote
Operating Details
In the first quarter, non-GAAP selling and administrative expenses were $124.3 million, suggesting a decline of 3.5% from the year-ago quarter.
Further, research and development spending was $35.1 million, indicating a decline of 1.7% form the year-ago reported figure.
Adjusted operating margin was 26%, contracting 150 basis points (bps) from the year-ago quarter.
Balance Sheet & Cash Flow
As of Mar 30, 2019, cash, cash equivalents and investments came in $1.17 billion, lower than $1.73 billion as of Dec 31, 2018.
Further, total liabilities were $2.28 billion, increasing from $2.16 billion in the previous quarter.
Waters also generated free cash flow of $157.61 million in the fourth quarter.
Guidance
For second-quarter 2019, Waters expects non-GAAP earnings in the range of $2.05-$2.15 per share. The Zacks Consensus Estimate for earnings is pegged at $2.23.
The company anticipates net sales growth between 2% and 4% on a constant currency basis. The Zacks Consensus Estimate for sales is currently projected at $612.63 million.
For 2019, Waters lowered guided range for non-GAAP earnings from $9.20-$9.45 per share to $9.05-$9.25 per share. The Zacks Consensus Estimate for 2019 earnings is pegged at $9.35 per share.
Further, the company guided net sales growth in the band of 2-4% on a constant currency basis, lower than the previously anticipated range of 4-6%. The Zacks Consensus Estimate for sales is pegged at $2.51 billion.
Zacks Rank & Stocks to Consider
Currently, Waters carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Fortive (NYSE:FTV) , Mettler-Toledo International (NYSE:MTD) and AMETEK (NYSE:AME) . While Fortive flaunts a Zacks Rank #1 (Strong Buy), Mettler-Toledo International and AMETEK carry a Zacks Rank #2 (Buy). You can see Original post
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