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Waters
🇺🇸 NYSE:WAT
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Apr 01, 2023

Waters Q1 2023 Earnings Report

Waters' first quarter performance in 2023 reflected sales decline of 1% as reported, but grew 3% in constant currency, with EPS decreasing to $2.38 on a GAAP basis and $2.49 on a non-GAAP basis.

Key Takeaways

Waters Corporation reported first quarter 2023 sales of $685 million, a 1% decrease as reported but a 3% increase in constant currency. GAAP EPS decreased to $2.38, while non-GAAP EPS was $2.49, which includes an approximate 8% headwind due to unfavorable foreign exchange. The company's performance reflects a healthy two-year stacked growth rate of 9.4%.

First quarter sales declined 1% as reported but grew 3% in constant currency.

Growth in Asia and Europe was offset by weakness in China and the U.S.

Instrument revenues declined 3% in constant currency due to Pharma customer recalibration.

Recurring revenues grew high-single-digits in constant currency, supported by commercial initiatives.

Total Revenue
$685M
Previous year: $691M
-0.9%
EPS
$2.49
Previous year: $2.8
-11.1%
Pharma Market Sales
384,898,000%
Previous year: 15%
+2565986566.7%
Industrial Market Sales
209,650,000%
Previous year: 14%
+1497499900.0%
Academic & Gov Sales
90,126,000%
0
Gross Profit
$400M
Previous year: $405M
-1.1%
Cash and Equivalents
$486K
Previous year: $480M
-99.9%
Total Assets
$3.31B
Previous year: $3.04B
+8.7%

Waters

Waters

Waters Revenue by Segment

Waters Revenue by Geographic Location

Forward Guidance

The Company expects second quarter 2023 organic constant currency sales growth in the range of 1% to 3%. The Company expects second quarter 2023 non-GAAP EPS in the range of $2.52 to $2.62.

Positive Outlook

  • Second quarter 2023 organic constant currency sales growth in the range of 1% to 3%.
  • Currency translation is expected to decrease second quarter sales growth by approximately 1%.
  • The Wyatt transaction is expected to increase second quarter reported sales growth by approximately 1.5%.
  • The resulting second quarter 2023 reported sales growth is expected in the range of 1.5% to 3.5.
  • The Company expects second quarter 2023 non-GAAP EPS in the range of $2.52 to $2.62.

Challenges Ahead

  • Currency translation is expected to decrease second quarter sales growth by approximately 1%.
  • The Wyatt transaction is expected to decrease second quarter 2023 non-GAAP EPS by approximately 3%.
  • Includes an estimated headwind of approximately 3% due to unfavorable foreign exchange.
  • Projected earnings per diluted share estimates exclude the impact of amortization of purchased intangibles related to recently announced acquisitions as the amounts cannot be reasonably estimated as of the date of this press release.
  • These forward-looking adjustment estimates do not reflect future gains and charges that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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