Waters (WAT) to Report Q4 Earnings: What's in the Offing?

Waters Corporation WAT is scheduled to report fourth-quarter 2019 results on Feb 4.

For fourth-quarter 2019, Waters expects non-GAAP earnings in the range of $2.95-$3.05 per share. The Zacks Consensus Estimate for earnings is pegged at $3.02 per share.

The company anticipates net sales growth between 0% and 2% on a constant currency basis. The Zacks Consensus Estimate for sales is currently projected at $713.97 million.

The company has surpassed the Zacks Consensus Estimate in two of the trailing four quarters, the average positive earnings surprise being 0.55%.

Waters Corporation Price and EPS Surprise

Waters Corporation Price and EPS Surprise

Waters Corporation price-eps-surprise | Waters Corporation Quote

Factors to Consider

Waters’ new product introductions are likely to have contributed the fourth-quarter performance.

BioAccord, which is the company’s robust liquid chromatography–mass spectrometry (LC-MS) solution, is expected to have benefited the performance of Waters segment in the to-be-reported quarter.

Further, introduction of Cyclic IMS and SYNAPT XS are expected to have aided the fourth-quarter performance. Moreover, the two new well-performing tandem quad mass spectrometers are likely to have contributed the to-be-reported quarter’s results.

Moreover, the company’s robust technology portfolio is likely to have aided its presence in the liquid chromatography market in the quarter under review.

Additionally, Waters is expected to have delivered improved sequential performance in the U.S. pharmaceutical space in the to-be-reported quarter on the back of new advanced products.

Further, the company’s large molecule applications might have witnessed strong adoption rate, which is likely to get reflected in the fourth-quarter results.

Furthermore, the company’s mass spectrometry portfolio is anticipated to have benefited the company in the quarter under review, owing to growing demand for high-resolution mass spec systems.

Also, the company’s strengthening position in the large molecule market courtesy of growing investments in LC, LC-MS and chemistries, is likely to get reflected in the fourth-quarter results.

However, headwinds related to end-market conditions in China and Europe thanks to Chinese government policy changes and European political uncertainties, respectively, are likely to have weighed on the fourth-quarter performance.

What Our Model Says

Our proven model conclusively predicts an earnings beat for Waters this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Waters has an Earnings ESP of +0.50% and a Zacks Rank #2.

Stocks to Consider

Here are some stocks you may consider, as our proven model shows that these too have the right combination of elements to post an earnings beat this quarter.

Advanced Energy Industries, Inc. AEIS has an Earnings ESP of +10.80% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Microchip Technology MCHP has an Earnings ESP of +1.33% and a Zacks Rank of 1.

Bruker Corporation BRKR has an Earnings ESP of +0.86% and a Zacks Rank #2.

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