Waters Corp (WAT) Reports Slight Sales Increase in Q3 2023 Amid Challenging Market Conditions
Waters Corp (NYSE:WAT) reports Q3 2023 sales of $712 million, a slight increase from $709 million in Q3 2022.
GAAP diluted earnings per share (EPS) for Q3 2023 was $2.27, compared to $2.60 for Q3 2022.
Non-GAAP EPS for Q3 2023 was $2.84, outperforming the $2.64 figure from Q3 2022.
The Wyatt acquisition contributed to a 4% sales growth in the quarter.
On November 7, 2023, Waters Corp (NYSE:WAT) announced its financial results for the third quarter of 2023. The company reported sales of $712 million for Q3 2023, a less than 1% increase compared to sales of $709 million for Q3 2022. Despite challenging market conditions, the company's non-GAAP EPS for Q3 2023 was $2.84, surpassing the $2.64 figure from Q3 2022.
Financial Performance Overview
Waters Corp (NYSE:WAT) reported a GAAP diluted EPS of $2.27 for Q3 2023, compared to $2.60 for Q3 2022. The company's non-GAAP EPS for Q3 2023 was $2.84, which includes a headwind of approximately 1% due to unfavorable foreign exchange. The Wyatt acquisition positively impacted the company's performance, contributing to a 4% sales growth in the quarter.
Market Performance and Sales
During Q3 2023, sales into the pharmaceutical market increased 4% as reported and decreased 2% in organic constant currency. Sales into the industrial market decreased 6% as reported and 8% in organic constant currency. Sales into the academic and government markets increased 3% as reported and decreased 3% in organic constant currency. Geographically, sales in Asia decreased 15% as reported and 12% in organic constant currency, while sales in the Americas increased 7% as reported and were flat in organic constant currency. Sales in Europe increased 15% as reported and 3% in organic constant currency.
Year-To-Date 2023 Performance
For the first nine months of 2023, Waters Corp (NYSE:WAT) reported sales of $2,137 million, a 1% increase compared to sales of $2,113 million for the first nine months of 2022. On a GAAP basis, EPS for the first nine months of 2023 was $7.19, compared to $7.94 for the first nine months of 2022. On a non-GAAP basis, EPS was $8.13, compared to $8.20 for the first nine months of 2022.
Looking Ahead
For the full year 2023, the company expects organic constant currency sales growth to decline in the range of -2% to -1%. The Wyatt transaction is expected to increase full-year reported sales growth by approximately 2.5%. The company also updated its full-year 2023 non-GAAP EPS guidance to be in the range of $11.65 to $11.75.
Explore the complete 8-K earnings release (here) from Waters Corp for further details.
This article first appeared on GuruFocus.
