Waters Corporation Prepares for Q3 Earnings Report Amid Challenging Market Conditions
Waters Corporation (WAT), based in Milford, Massachusetts, specializes in laboratory instruments, software, and consumables. With a market cap of $20.6 billion, the company serves multiple sectors, including pharmaceuticals, environmental sciences, food, and materials. On Friday, Nov. 1, WAT will announce its Q3 earnings before the market opens.
Profit Expectations and Recent Performance
Analysts are anticipating a profit of $2.68 per share for WAT, which marks a 5.6% decrease from last year’s $2.84 in the same quarter. Notably, the company has exceeded Wall Street’s earnings-per-share (EPS) estimates for four consecutive quarters.
In its most recent quarter, Waters Corporation reported adjusted earnings of $2.63 per share, beating the consensus estimate by 3.1%. The company’s growth in services and chemistry contributed to this positive result in Q2 2024.
2024 Forecast and Market Challenges
Looking ahead to fiscal 2024, forecasts indicate an EPS of $11.60, down 1.3% from $11.75 in fiscal 2023.
This year, WAT stock has risen 5.8% year-to-date, considerably lagging behind the broader S&P 500 Index’s ($SPX) 23% gains and the Health Care Select Sector SPDR Fund’s (XLV) 12.3% gain during the same period.
Several factors have hurt WAT’s performance this year, including reduced demand in key markets such as pharmaceuticals, industry, and government sectors. Additionally, sluggish global performance across Asia, the Americas, and Europe has contributed to these challenges.
Market Sentiment and Analyst Opinions
Despite the struggles, shares of Waters Corporation saw an increase of more than 2% following its Q2 earnings report on July 31. The company reported revenue of $708.5 million, slightly exceeding Wall Street expectations due to strength in Services and Chemistry sales.
The overall sentiment towards WAT stock remains cautious, reflected in a general “Hold” rating. Among the 17 analysts monitoring the stock, three recommend a “Strong Buy,” 13 advise holding, and one suggests a “Strong Sell.” The average analyst price target stands at $351.93, indicating a potential upside of 1% from current prices.
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On the date of publication, Rashmi Kumari did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are intended solely for informational purposes. For further details, please review the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
