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Benzinga
Benzinga
Business
Anusuya Lahiri

Why Waters Corp Shares Are Surging Today

  • Waters Corp (NYSE:WATreported first-quarter FY22 revenue growth of 16% year-on-year in CC to $690.6 million, above the consensus of $632.8 million.
  • Sales into the pharmaceutical market increased 19% in CC, sales into the industrial market increased 17% in CC, and sales into the academic and government markets increased 4% in CC.
  • Recurring revenues increased 9% in CC, while instrument system sales increased 26% in CC.
  • Geographically, sales in Asia increased 14%, sales in the Americas increased 26% (with U.S. sales growing 28%), and sales in Europe increased 9% in CC.
  • The non-GAAP operating income margin expanded by 170 basis points to 30.3%.
  • Non-GAAP EPS of $2.80 beat the consensus of $2.32.
  • Waters generated $197.96 million in operating cash flow.
  • "This was a record first quarter for Waters' sales, led by instruments which grew 26% in constant currency, while our recurring revenues grew 9% in constant currency, reflecting continued demand across our geographies and end-markets," CEO Dr. Udit Batra said.
  • Outlook: Waters sees Q2 revenue of $695.3 million - $708.9 million versus the consensus of $706.5 million. Waters sees non-GAAP EPS of $2.55 - $2.65, below the consensus of $2.78. 
  • Waters raised constant currency sales growth outlook to 7.5% - 9% (prior view 5% - 7%), representing sales of $2.91 billion - $2.95 billion versus the consensus of $2.93 billion. Waters sees non-GAAP EPS of $11.90 - $12.10 (prior view $11.75 - $12.00) versus the consensus of $11.9. 
  • Price Action: WAT shares are trading 7.69% higher at $325.73 on the last check Tuesday.
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