Waters (WAT) to Report Q1 Earnings: What's in the Cards?
Waters Corporation WAT is scheduled to report first-quarter 2022 results on May 3.
For the first quarter, it expects non-GAAP earnings of $2.25-$2.35 per share. The Zacks Consensus Estimate for the same is pegged at $2.32 per share, indicating an increase of 1.31% from the year-ago reported figure.
Further, the company expects net sales growth between 6% and 8% on a constant-currency basis. The consensus mark for first-quarter revenues stands at $632.9 million, implying a 4% improvement from the prior-year reported value. Further, the metric has been unchanged over the past 30 days.
It surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 20.3%.
Waters Corporation Price and EPS Surprise
Waters Corporation price-eps-surprise | Waters Corporation Quote
Key Factors to Note
Waters’ first-quarter performance is likely to have benefited from solid momentum across pharmaceutical, industrial, and academic and government end markets.
Continuous investments in liquid chromatography instruments, mass spectrometers and chemistries are likely to have contributed well to the top line in the to-be-reported quarter.
The company’s robust liquid chromatography-mass spectrometry solution named BioAccord is expected to have supported the quarterly performance.
Additionally, strength in Arc HPLC and Premier instruments might have persistently benefited its top line during the quarter under review.
Improved performance in Asia, Americas and Europe is expected to have remained a positive factor for the company.
Waters’ growing efforts toward expanding the product portfolio across instruments, consumables and informatics is likely to have driven the quarterly performance.
During the first quarter, the company released the MS Quan application on the waters_connect informatics software platform to help scientists efficiently screen large number of samples and contaminants. This might have been a tailwind.
Yet, uncertainties related to the ongoing coronavirus pandemic might get reflected in the upcoming quarterly results.
Further, increasing selling and administrative expenses are expected to have affected its quarterly performance.
What Our Model Says
Our proven model predicts an earnings beat for Waters this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
It has an Earnings ESP of +0.03% and a Zacks Rank #2, at present.
Other Stocks to Consider
Here are some other stocks that you may also consider as our model shows that these too have the right combination of elements to beat on earnings this season.
Analog Devices ADI has an Earnings ESP of +2.17% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year reported figure.
Cisco Systems CSCO has an Earnings ESP of +0.84% and a Zacks Rank #2 at present.
Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, which suggests an increase of 3.61% from the prior-year reported figure.
HP HPQ has an Earnings ESP of +0.78% and a Zacks Rank #3 at present.
HP is scheduled to release second-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for HPQ’s earnings is pegged at $1.06 per share, which suggests an increase of 13.98% from the prior-year reported figure.
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