Waters Corporation Reports Strong Q3 2024 Financial Results
Waters Corporation (NYSE: WAT) today announced its financial results for the third quarter of 2024, showcasing robust performance driven by sales growth in multiple segments.
Key Financial Metrics
| Financial Metric | Q3 2024 | Q3 2023 | Year-over-Year Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $740M | $712M | +4% | $713.02M |
| GAAP EPS | $2.71 | $2.27 | +19% | |
| Non-GAAP EPS | $2.93 | $2.84 | +3% | $2.68 |
Waters Corporation reported a total revenue of $740 million for Q3 2024, a 4% increase compared to the same period last year, surpassing the consensus estimate of $713.02 million. The company also delivered a GAAP EPS of $2.71 and a non-GAAP EPS of $2.93, both surpassing analyst expectations, indicative of strong operational performance and favorable market conditions.
Revenue Performance by Segment
| Segment | Revenue Growth as Reported | Constant Currency Growth |
|---|---|---|
| Pharmaceutical | +2% | +3% |
| Industrial | +9% | +7% |
| Academic & Government | +2% | 0% (constant currency) |
The industrial sector led the revenue growth with a 9% increase as reported and 7% in constant currency, underscoring Waters' ability to capture market opportunities, particularly with the rebound of the instruments business. Pharmaceutical and academic segments also showed growth, albeit at a more moderate pace.
Operational Highlights
- Instrument system sales saw a modest increase of 1%.
- Recurring revenues grew by 6% as reported, with a 7% increase in constant currency.
- Geographically, notable growth was observed in Asia and Europe, with sales increasing by 5% and 6% respectively as reported.
Executive Comments
Dr. Udit Batra, President & CEO of Waters Corporation, highlighted the success of new product adoptions and improved customer spending trends as key drivers of the quarterly performance. Dr. Batra expressed confidence in the company's long-term outlook, backed by a competitive product portfolio and solid operational execution.
Forward Guidance
Waters Corporation raised its full-year 2024 guidance, now expecting non-GAAP EPS to be between $11.67 to $11.87, despite an estimated foreign exchange headwind of approximately 3%. For Q4 2024, the company anticipates non-GAAP EPS in the range of $3.90 to $4.10.
Stock Price Movement
Following the earnings release, Waters Corporation's stock experienced a decline of approximately 1.07%.
In summary, Waters Corporation delivered a robust financial performance in Q3 2024, exceeding market expectations on both revenue and earnings fronts, while raising its full-year guidance, signaling a positive future outlook.
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