Scientific instruments company Waters Corporation (NYSE:WAT) will be reporting earnings this Monday before market hours. Here’s what to look for.
Waters Corporation beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $661.7 million, up 3.9% year on year. It was a satisfactory quarter for the company, with a narrow beat of analysts’ organic revenue estimates.
Is Waters Corporation a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Waters Corporation’s revenue to grow 5.4% year on year to $746.6 million, a reversal from the 4.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.94 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Waters Corporation has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Waters Corporation’s peers in the research tools & consumables segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Mettler-Toledo delivered year-on-year revenue growth of 3.9%, beating analysts’ expectations by 2.9%, and Thermo Fisher reported revenues up 3%, topping estimates by 1.6%. Mettler-Toledo traded down 3% following the results while Thermo Fisher was up 11.3%.
Read our full analysis of Mettler-Toledo’s results here and Thermo Fisher’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the research tools & consumables stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.3% on average over the last month. Waters Corporation is down 16.3% during the same time and is heading into earnings with an average analyst price target of $373.98 (compared to the current share price of $290.31).
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