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Waters (WAT) to Report Q2 Earnings: What's in the Cards?

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Waters Corporation WAT is scheduled to report second-quarter 2022 results on Aug 2.

For the second quarter, WAT expects non-GAAP earnings of $2.55-$2.65 per share. The Zacks Consensus Estimate for the same is pegged at $2.63 per share, indicating an increase of 1.15% from the year-ago quarter’s reported figure.

Waters expects net sales growth between 6% and 8% on a constant-currency basis. The consensus mark for second-quarter revenues stands at $705.6 million, implying a 3.51% improvement from the prior-year reported value. The consensus mark has been unchanged over the past 30 days.

Waters surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 14.1%.

Waters Corporation Price and EPS Surprise

Waters Corporation Price and EPS Surprise
Waters Corporation Price and EPS Surprise

Waters Corporation price-eps-surprise | Waters Corporation Quote

Key Factors to Note

Waters’ second-quarter performance is likely to have benefited from solid momentum across the pharmaceutical, industrial, and the academic and government end markets.

Growing efforts toward expanding the product portfolio across instruments, consumables and informatics are expected to have driven WAT’s performance in the underlined quarter.

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.

During the second quarter, WAT introduced the Xevo G3 quadrupole time-of-flight mass spectrometer, a new oligonucleotide sequencing confirmation app named CONFIRM Sequence for the waters_connect software platform and an electrospray ionization source for the high-resolution Waters SELECT SERIES Multi-Reflecting Time of Flight mass spectrometer to drive drug discovery and development. These product launches might have been a tailwind.

Waters’ robust liquid chromatography-mass spectrometry solution named BioAccord is expected to have supported the quarterly performance.

Strength in Arc HPLC and ACQUITY Premier instruments, and MAX peak premier columns might have consistently benefited its top line during the quarter under review.

Waters is expected to have continued performing well in Asia, the Americas and Europe in the quarter under discussion.

However, uncertainties related to the ongoing coronavirus pandemic might get reflected in the upcoming quarterly results. The pandemic-induced lockdown in China is likely to have remained a headwind.

Increasing expenses, supply-chain constraints and inflationary pressures are expected to have affected WAT’s 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.

Waters has an Earnings ESP of +1.41% and a Zacks Rank #3 at present.

Other Stocks to Consider

Here are some other stocks worth considering, as our model shows that these too have the right combination of elements to beat on earnings this season.

Palo Alto Networks PANW has an Earnings ESP of +0.47% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Palo Alto Networks is set to report fourth-quarter fiscal 2022 results on Aug 22. The Zacks Consensus Estimate for PANW’s earnings is pegged at $2.28 per share, suggesting an increase of 42.5% from the prior-year fiscal period’s reported figure.

Keysight Technologies KEYS has an Earnings ESP of +1.23% and a Zacks Rank of 2 at present.

Keysight Technologies is scheduled to release third-quarter fiscal 2022 results on Aug 17. The Zacks Consensus Estimate for KEYS’ earnings is pegged at $1.79 per share, suggesting an increase of 16.2% from the prior-year fiscal quarter’s reported figure.

Box BOX has an Earnings ESP of +1.20% and a Zacks Rank #3 at present.

Box is scheduled to release second-quarter 2022 results on Aug 24. The Zacks Consensus Estimate for BOX’s earnings is pegged at 28 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Waters Corporation (WAT) : Free Stock Analysis Report
 
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
 
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