NYSE$WAT

Waters Corporation · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Waters' first quarter performance in 2023 reflected sales decline of 1% as reported, but grew 3% in constant currency, with EPS decreasing to $2.38 on a GAAP basis and $2.49 on a non-GAAP basis.

Waters Corporation reported first quarter 2023 sales of $685 million, a 1% decrease as reported but a 3% increase in constant currency. GAAP EPS decreased to $2.38, while non-GAAP EPS was $2.49, which includes an approximate 8% headwind due to unfavorable foreign exchange. The company's performance reflects a healthy two-year stacked growth rate of 9.4%.

  • First quarter sales declined 1% as reported but grew 3% in constant currency.
  • Growth in Asia and Europe was offset by weakness in China and the U.S.
  • Instrument revenues declined 3% in constant currency due to Pharma customer recalibration.
  • Recurring revenues grew high-single-digits in constant currency, supported by commercial initiatives.

Headline financials

Total Revenue

$685M

Previous: $691M-0.9%
EPS (adj)

$2.49

Previous: $2.80-11.1%
Pharma Market Sales

$385M

Previous: $15.00+2565986566.7%
Industrial Market Sales

$210M

Previous: $14.00+1497499900.0%
Academic & Gov Sales

$90.1M

Previous: $0.00
Free Cash Flow

$141M

Previous: $160M-11.8%
Net Income

$141M

Previous: $160M-11.8%
Operating Income

$174M

Previous: $195M-10.9%
Gross Profit

$400M

Previous: $405M-1.1%
Cash & Equivalents

$486M

Previous: $480M+1.2%
Total Assets

$3.31B

Previous: $3.04B+8.7%
Stock-Based Comp

$12.8M

Previous: $10.9M+17.1%

Revenue & EPS history

Waters · Revenue · Quarterly

$685M

Q1 2023-0.9%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Waters · $685M total across 2 segments · Q1 2023

  • Waters
    $602M
  • TA
    $82.6M

Forward guidance

The Company expects second quarter 2023 organic constant currency sales growth in the range of 1% to 3%. The Company expects second quarter 2023 non-GAAP EPS in the range of $2.52 to $2.62.

Tailwinds

  • Second quarter 2023 organic constant currency sales growth in the range of 1% to 3%.
  • Currency translation is expected to decrease second quarter sales growth by approximately 1%.
  • The Wyatt transaction is expected to increase second quarter reported sales growth by approximately 1.5%.
  • The resulting second quarter 2023 reported sales growth is expected in the range of 1.5% to 3.5.
  • The Company expects second quarter 2023 non-GAAP EPS in the range of $2.52 to $2.62.

Headwinds

  • Currency translation is expected to decrease second quarter sales growth by approximately 1%.
  • The Wyatt transaction is expected to decrease second quarter 2023 non-GAAP EPS by approximately 3%.
  • Includes an estimated headwind of approximately 3% due to unfavorable foreign exchange.
  • Projected earnings per diluted share estimates exclude the impact of amortization of purchased intangibles related to recently announced acquisitions as the amounts cannot be reasonably estimated as of the date of this press release.
  • These forward-looking adjustment estimates do not reflect future gains and charges that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.2%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+0.8%

Avg return

30 days after

60%

44 / 73 earnings

Positive

+19.9%

Q3 2024

Best reaction

-13.9%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.1%+17.7%+22.9%
Q4 2025-13.9%-15.2%-22.0%
Q3 2025+6.6%+7.6%+14.7%
Q2 2025-1.6%-3.1%-0.1%
Q1 2025-2.7%-1.2%-0.6%
Q4 2024-5.8%-8.8%-6.9%
Q3 2024+19.9%+19.7%+19.1%
Q2 2024+7.6%+0.4%+5.7%
Q1 2024+1.2%+9.8%-6.0%
Q4 2023-0.4%-0.6%+11.1%
Q3 2023+1.5%+1.5%+16.4%
Q2 2023+6.2%+5.6%+2.4%
Q1 2023-8.1%-8.6%-15.7%
Q4 2022-3.5%-3.1%-11.9%
Q3 2022-1.1%+2.0%+16.0%
Q2 2022-7.3%-7.6%-17.8%
Q1 2022+13.3%+8.4%+10.1%
Q4 2021+3.1%+1.8%+0.4%
Q3 2021-4.7%-5.9%-8.4%
Q2 2021+1.4%+1.7%+8.3%
Q1 2021+3.1%+6.0%+6.5%
Q4 2020+4.6%+5.5%-2.7%
Q3 2020+2.0%+1.1%+2.9%
Q2 2020-4.8%-6.3%-5.1%
Q1 2020-1.2%-8.7%+1.5%
Q4 2019-2.3%-3.8%-12.0%
Q3 2019-2.3%-2.3%+1.6%
Q2 2019-3.9%-4.4%-3.8%
Q1 2019-13.9%-11.1%-14.9%
Q4 2018+9.8%+12.3%+15.6%
Q3 2018-5.7%-1.8%+5.2%
Q2 2018+0.1%-0.6%-4.5%
Q1 2018-8.6%-9.1%-7.4%
Q4 2017-0.2%+1.6%-4.8%
Q3 2017+1.5%+6.5%+4.8%
Q2 2017-6.7%-5.9%-2.2%
Q1 2017+6.7%+6.0%+11.4%
Q4 2016-0.8%-0.6%+6.6%
Q3 2016-12.9%-11.4%-12.3%
Q2 2016+6.0%+7.1%+6.5%
Q1 2016-3.1%
Q4 2015-5.0%
Q3 2015+4.1%
Q2 2015+2.7%
Q1 2015+2.8%
Q4 2014+4.3%
Q3 2014+7.1%
Q2 2014+3.4%
Q1 2014-9.0%
Q4 2013+5.7%
Q3 2013-4.1%
Q2 2013-4.8%
Q1 2013+3.6%
Q4 2012+2.8%
Q3 2012+0.7%
Q2 2012+2.1%
Q1 2012+0.3%
Q4 2011+1.0%
Q3 2011-0.3%
Q2 2011-7.2%
Q1 2011+2.2%
Q4 2010+1.8%
Q3 2010+0.6%
Q2 2010+0.7%
Q1 2009+2.3%
Q1 2010+0.2%
Q4 2007+3.0%
Q4 2009+3.0%
Q3 2009+2.6%
Q3 2008+2.6%
Q2 2008+1.9%
Q4 2008+1.9%
Q2 2009+1.9%

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