A Look Ahead: Waters's Earnings Forecast

Waters WAT is preparing to release its quarterly earnings on Friday, 2024-11-01. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Waters to report an earnings per share (EPS) of $2.68.

Anticipation surrounds Waters's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

The company's EPS beat by $0.07 in the last quarter, leading to a 4.83% increase in the share price on the following day.

Here's a look at Waters's past performance and the resulting price change:

Waters Share Price Analysis

Shares of Waters were trading at $326.59 as of October 30. Over the last 52-week period, shares are up 24.59%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on Waters

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Waters.

Waters has received a total of 4 ratings from analysts, with the consensus rating as Buy. With an average one-year price target of $365.0, the consensus suggests a potential 11.76% upside.

Peer Ratings Overview

In this comparison, we explore the analyst ratings and average 1-year price targets of Avantor, Illumina and Revvity, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Outperform trajectory for Avantor, with an average 1-year price target of $28.67, implying a potential 91.22% downside.
• As per analysts' assessments, Illumina is favoring an Neutral trajectory, with an average 1-year price target of $167.41, suggesting a potential 48.74% downside.
• The consensus outlook from analysts is an Outperform trajectory for Revvity, with an average 1-year price target of $135.0, indicating a potential 58.66% downside.

Peer Metrics Summary

The peer analysis summary presents essential metrics for Avantor, Illumina and Revvity, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Waters ranks highest in Gross Profit and Return on Equity among its peers. However, it ranks lowest in Revenue Growth. Overall, Waters is positioned in the middle compared to its peers based on the provided metrics.

Get to Know Waters Better

Water sells liquid chromatography, mass spectrometry, and thermal analysis tools. These analytical instruments provide essential information on various products, such as their molecular structures and physical properties, to help clients enhance the health and well-being of end users. As a percentage of sales in 2023, Waters generated 57% from biopharmaceutical customers, 31% from industrial clients, and 12% from academic/government institutions.

A Deep Dive into Waters's Financials

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Waters's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -4.33%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: Waters's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 20.15% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Waters's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 10.7% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Waters's ROA stands out, surpassing industry averages. With an impressive ROA of 3.19%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Waters's debt-to-equity ratio stands notably higher than the industry average, reaching 1.48. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Waters visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.