The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Waters met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins contracted, net margins expanded.
Waters booked revenue of $521.8 million. The 16 analysts polled by S&P Capital IQ anticipated a top line of $522.6 million on the same basis. GAAP reported sales were 0.1% higher than the prior-year quarter's $521.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.59. The 19 earnings estimates compiled by S&P Capital IQ predicted $1.59 per share. GAAP EPS of $2.00 for Q4 were 32% higher than the prior-year quarter's $1.52 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 60.1%, 70 basis points worse than the prior-year quarter. Operating margin was 31.4%, 20 basis points worse than the prior-year quarter. Net margin was 33.7%, 740 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $438.0 million. On the bottom line, the average EPS estimate is $1.12.
Next year's average estimate for revenue is $1.93 billion. The average EPS estimate is $5.41.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 313 members out of 328 rating the stock outperform, and 15 members rating it underperform. Among 107 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 104 give Waters a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Waters is outperform, with an average price target of $88.82.
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