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Waters Corporation (WAT), headquartered in Milford, Massachusetts, is a specialty measurement company focused on laboratory instruments, software, and consumables. With a market cap of $20.6 billion, Waters serves various industries, including pharmaceuticals, environmental sciences, food, and materials. Waters is set to announce its Q3 earnings before the market opens on Friday, Nov. 1.
Ahead of the event, analysts expect WAT to report a profit of $2.68 per share, down 5.6% from $2.84 in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in the last four quarters.
Waters Corporation's adjusted earnings of $2.63 per share for the last quarter surpassed the consensus estimate by 3.1%. Services and chemistry growth drove WAT's Q2 2024 beat.
For fiscal 2024, analysts expect WAT to report EPS of $11.60, down 1.3% from $11.75 in fiscal 2023.
WAT stock is up 5.8% YTD, significantly underperforming the broader S&P 500 Index's ($SPX) 23% gains and the Health Care Select Sector SPDR Fund's (XLV) 12.3% gain over the same time frame.
WAT struggled this year due to weak demand across key markets like pharma, industrial, and government sectors. Add in sluggish global performance in Asia, the Americas, and Europe, plus headwinds from its Waters and TA segments, and it is clear the company was facing pressure.
However, shares of Waters Corporation gained more than 2% after the release of its Q2 earnings on July 31. The company’s revenue amounted to $708.5 million, slightly surpassing the Wall Street forecasts. Strength in Services and Chemistry sales provided a slight boost.
The consensus opinion on WAT stock is cautious, with an overall “Hold” rating. Of 17 analysts covering the stock, three advise a “Strong Buy” rating, 13 indicate a “Hold,” and one advises “Strong Sell.”
WAT's average analyst price target is $351.93, suggesting a potential upside of 1% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
