Waters Tops Q4 Consensus; Issues Robust FY22 Outlook

Waters Corp WAT reported fourth-quarter FY21 revenue growth of 8% year-on-year in CC to $836 million above the consensus of $821 million.

• Sales into the pharmaceutical market increased 8% in CC, sales into the industrial market increased 7% in CC, and sales into the academic and government markets increased 5% in CC.
• Recurring revenues increased 3% in CC, while instrument system sales increased 12% in CC.
• Geographically, sales in Asia increased 9%, sales in the Americas increased 8% (with U.S. sales growing 8%), and sales in Europe increased 1%.
• Non-GAAP EPS of $3.67 beat the consensus of $3.47.
• Waters generated $218 million in operating cash flow.
• Outlook: Waters sees Q1 FY22 revenue of $626.8 million - $639.97 million in CC versus the consensus of $627.1 million. Waters sees non-GAAP EPS of $2.25 - $2.35 below the consensus of $2.38. 
• Waters sees FY22 revenue of $2.897 billion - $2.953 billion in CC versus the consensus of $2.92 billion. Waters sees non-GAAP EPS of $11.75 - $12.00 versus the consensus of $11.78. 
• Price Action: WAT shares are trading 2.37% higher at $327.71 on the last check Tuesday.