Scientific instruments company Waters Corporation (NYSE:WAT) will be reporting earnings tomorrow before the bell. Here’s what to look for.
Waters Corporation beat analysts’ revenue expectations by 3.9% last quarter, reporting revenues of $740.3 million, up 4% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a decent beat of analysts’ EPS estimates.
Is Waters Corporation a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Waters Corporation’s revenue to grow 4.5% year on year to $856.4 million, a reversal from the 4.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.03 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Waters Corporation has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Waters Corporation’s peers in the research tools & consumables segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Bio-Techne delivered year-on-year revenue growth of 9%, beating analysts’ expectations by 4.2%, and Danaher reported revenues up 2.1%, topping estimates by 1.6%. Bio-Techne traded up 3.3% following the results while Danaher was down 10%.
Read our full analysis of Bio-Techne’s results here and Danaher’s results here.
Investors in the research tools & consumables segment have had steady hands going into earnings, with share prices flat over the last month. Waters Corporation is up 1.9% during the same time and is heading into earnings with an average analyst price target of $395.01 (compared to the current share price of $407.58).
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