Waters Beats Up on Analysts Yet Again
Waters (NYS: WAT) reported earnings on Jan. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Waters met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and earnings per share expanded.
Gross margins shrank, operating margins increased, and net margins improved.
Waters recorded revenue of $521 million. The 18 analysts polled by S&P Capital IQ anticipated revenue of $517 million. Sales were 7.8% higher than the prior-year quarter's $484 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.56. The earnings estimates compiled by S&P Capital IQ predicted $1.50 per share on the same basis. GAAP EPS of $1.51 for Q4 were 12% higher than the prior-year quarter's $1.35 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 60.8%, 10 basis points worse than the prior-year quarter. Operating margin was 31.6%, 100 basis points better than the prior-year quarter. Net margin was 26.3%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $446 million.
Next year's average estimate for revenue is $2 billion. The average EPS estimate is $5.31.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 317 members out of 332 rating the stock outperform, and 15 members rating it underperform. Among 115 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give Waters a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Waters is outperform, with an average price target of $88.63.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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