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With a market cap of $22.6 billion, Waters Corporation (WAT) is a global leader in analytical instrument manufacturing, specializing in liquid chromatography (LC), mass spectrometry (MS), and thermal analysis technologies. Serving customers in the pharmaceutical, life science, industrial, and academic sectors, the company provides innovative solutions across Asia, the Americas, and Europe. WAT is expected to unveil its fiscal Q4 earnings results on Tuesday, Feb. 4.
Ahead of the event, analysts forecast the Milford, Massachusetts-based company to post a profit of $4.02 per share, reflecting a growth of 11.1% from $3.62 per share in the same quarter last year. The company has consistently surpassed Wall Street's bottom-line projections in the past four quarters. WAT surpassed the consensus EPS estimate by a margin of 9.3% in the last reported quarter.
For fiscal 2024, analysts expect WAT to report EPS of $11.79, a marginal increase from $11.75 in fiscal 2023. Looking forward to fiscal 2025, its EPS is expected to grow 9.2% year-over-year to $12.87.
WAT has returned 29.1% over the past 52 weeks, outperforming the broader S&P 500 Index's ($SPX) 21.6% rise and the Health Care Select Sector SPDR Fund's (XLV) marginal gain over the same period.
Shares of Waters Corporation climbed 19.8% on Nov. 1 due to its Q3 2024 results exceeding expectations, with adjusted earnings of $2.93 per share and net sales of $740.3 million. Growth across all major regions and key markets, particularly the rebound in liquid chromatography sales, fueled investor confidence. Furthermore, Waters raised its Q4 guidance, projecting adjusted earnings of $3.90 per share - $4.10 per share and organic sales growth of 5% - 7%, further boosting investor optimism.
Analysts' consensus rating on Waters Corporation stock is cautious, with a "Hold" rating overall. Out of 18 analysts covering the stock, opinions include four "Strong Buys," 13 "Holds," and one "Strong Sell." As of writing, WAT is trading above the average analyst price target of $380.06.
