WAT - Waters beats Q2 top and bottom line estimates; initiates Q3 and updates FY23 outlook

2023-08-02 06:53:14 ET

• Waters press release ( NYSE: WAT ): Q2 Non-GAAP EPS of $2.80 beats by $0.21 .
• Revenue of $741M (+3.8% Y/Y) beats by $7.8M . Currency translation decreased sales by 1%, while the impact of acquisitions increased sales by 2%, resulting in organic constant currency sales growth of 3%.

• Full-Year 2023 Financial Guidance: The Company now expects full-year 2023 organic constant currency sales growth in the range of 0.5% to 1.5%. Currency translation is expected to have minimal impact on full-year organic sales growth. The Wyatt transaction is expected to increase full-year reported sales growth by approximately 2.5%. The resulting full-year 2023 reported sales growth is expected in the range of 3% to 4% vs. consensus growth of  5.46% Y/Y.

• The Company is updating its full-year 2023 non-GAAP EPS guidance to now be in the range of $12.20 to $12.30 vs. consensus of $12.42, which includes an estimated headwind of approximately 1% due to unfavorable foreign exchange.

• Third Quarter 2023 Financial Guidance: The Company expects third quarter 2023 organic constant currency sales growth to decline in the range of -4% to -2%. Currency translation is expected to increase third quarter sales growth by approximately 1%. The Wyatt transaction is expected to increase third quarter reported sales growth by approximately 4%. The resulting third quarter 2023 reported sales growth is expected in the range of 1% to 3% vs. consensus growth of 8.69% Y/Y.

• The Company expects third quarter 2023 non-GAAP EPS in the range of $2.50 to $2.60 vs. consensus of $3.03, which includes a neutral foreign exchange impact.

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