Waters (WAT) To Report Q2 Earnings: What's In The Cards?
Zacks Investment Research | Jul 25, 2019 11:28PM ET
Waters Corporation (NYSE:WAT) is set to report second-quarter 2019 results on Jul 30.
The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average positive earnings surprise of 0.85%.
Q1 at a Glance
In the last reported quarter, Waters’ earnings of $1.6 per share missed the Zacks Consensus Estimate by 13 cents. Further, the figure improved 0.6% on a year-over-year basis but fell 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.
Adverse effects of foreign exchange fluctuations and macro-economic headwinds in China and Europe impacted the results negatively.
Estimates for Q2
For the second quarter, Waters anticipates non-GAAP earnings in the range of $2.05-$2.15 per share. The Zacks Consensus Estimate for earnings is pegged at $2.11.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Waters’ well-performing products in the analytical instrument category are likely to benefit segmental performance in the to-be reported quarter.
Waters segment is likely to benefit from the company’s strengthening high-resolution mass spectrometry portfolio and well-performing liquid chromatography instruments. BioAccord, which is the company’s robust liquid chromatography–mass spectrometry solution, is likely to aid the segment’s performance in the to-be-reported quarter.
For the second quarter, the Zacks Consensus Estimate for sales in Waters segment is pegged at $533 million, suggesting an improvement of 1.1% from the year-ago reported figure.
Additionally, the company’s robust thermal analyzers are anticipated to aid TA segment performance in the quarter under review. Further, its Discovery Thermal Mechanical Analyzer TMA 450, which is setting new industry standards, is likely to act as a tailwind. Further, the company is early in the commercialization cycle of these analyzers, which is likely to aid the upcoming quarterly results.
However, uncertainty related to ongoing Brexit political stalemate remains a concern for TA products’ momentum in Europe.
We note that the Zacks Consensus Estimate for sales in TA segment is pegged at $68 million, suggesting a decline of 1.3% from the year-ago reported figure.
Additionally, upswing in end-market sales estimates is notable. The Zacks Consensus Estimate for sales in Pharmaceutical, Industrial and Governmental & Academic (G&A) are projected at $343 million, $186 million and $75 million, respectively.
Get The News You Want
The figures are up 1.4%, 1.3% and 1.1%, respectively compared with the year-ago actual figures.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chance of beating estimates if it also has a positive Original post
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.