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Dec 31, 2022

Waters Q4 2022 Earnings Report

Waters' Q4 2022 financial performance was marked by sales growth and strategic portfolio expansion.

Key Takeaways

Waters Corporation reported a 3% increase in sales to $859 million for Q4 2022. The company's EPS increased to $3.81 on a GAAP basis and $3.84 on a non-GAAP basis. Waters also announced the acquisition of Wyatt Technology, signaling the next phase of its growth strategy.

Q4 sales reached $859 million, a 3% increase as reported and 9% in constant currency.

Instrument sales experienced double-digit growth, driving the quarter's performance.

Industrial market sales grew by mid-teens, with robust growth across all end markets.

The company announced the acquisition of Wyatt Technology to further its growth strategy.

Total Revenue
$859M
Previous year: $836M
+2.6%
EPS
$3.84
Previous year: $3.67
+4.6%
Industrial Market Sales
8%
Previous year: 247,320,000%
-100.0%
Academic & Gov Sales
1%
Previous year: 97,259,000%
-100.0%
Gross Profit
$510M
Previous year: $485M
+5.1%
Cash and Equivalents
$481M
Previous year: $501M
-4.0%
Total Assets
$3.28B
Previous year: $3.09B
+6.0%

Waters

Waters

Waters Revenue by Segment

Waters Revenue by Geographic Location

Forward Guidance

Waters Corporation anticipates full-year 2023 organic constant currency sales growth in the range of 5% to 6.5% and non-GAAP EPS in the range of $12.55 to $12.75.

Positive Outlook

  • Full-year 2023 organic constant currency sales growth is expected in the range of 5% to 6.5%.
  • The Wyatt transaction is expected to increase full-year reported sales growth by 2% to 3%.
  • Full-year 2023 reported sales growth is expected in the range of 6% to 8.5%.
  • The company expects full-year 2023 non-GAAP EPS in the range of $12.55 to $12.75.
  • The Wyatt transaction is expected to become accretive to non-GAAP EPS starting in the first quarter of 2024.

Challenges Ahead

  • Currency translation is expected to decrease full-year organic sales growth by approximately 1%.
  • Full-year 2023 non-GAAP EPS includes an estimated headwind of approximately 3% due to unfavorable foreign exchange.
  • The Wyatt transaction is expected to temporarily decrease full-year 2023 non-GAAP EPS by approximately 1%.
  • First quarter 2023 constant currency sales growth is expected in the range of 4% to 6%.
  • Currency translation is expected to decrease first quarter sales growth by approximately 4%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income