Waters Corp. Sees Positive EPS Growth Ahead of Q4 Earnings

Waters Corporation anticipates a solid profit growth of 11.1%, projecting EPS of $4.02 for Q4. With positive momentum from previous quarters and a cautious 'Hold' consensus, investors remain optimistic about stock performance.

Date: 14-01-2025

AI Rating: 7

**Earnings Per Share (EPS)**: Waters Corporation is set to report a fiscal Q4 EPS of $4.02, marking an 11.1% growth from $3.62 from the same quarter last year. This is a strong indicator of profitability, and it shows the company's ability to enhance its earnings even in varying market conditions. The forecast for fiscal 2024 is a modest increase in EPS to $11.79 from $11.75 in fiscal 2023. Additionally, for fiscal 2025, an expected 9.2% year-over-year growth in EPS to $12.87 demonstrates positive growth trajectory. This consistent growth in EPS can positively influence investor sentiment and stock prices.

**Net Income**: While the report does not specify exact figures for net income, the increase in EPS strongly suggests that the net income of Waters Corporation is also expected to improve. Given that EPS growth often correlates with net income performance, the anticipated increases should foster confidence in the company's overall financial health.

**Recent Performance**: Waters’ stock experienced a significant climb of 19.8% after the release of its Q3 2024 results, which exceeded analyst expectations with adjusted earnings of $2.93 per share and net sales of $740.3 million. This indicates strong sales growth across all major regions and markets, particularly in liquid chromatography sales, affirming robust performance fundamentals. Moreover, the company raised its Q4 guidance, projecting adjusted earnings between $3.90 and $4.10 per share and organic sales growth of 5% to 7%, further amplifying investor optimism.

**Analyst Sentiment**: The consensus rating on Waters Corporation is a cautious 'Hold,' with only 4 of the 18 analysts recommending 'Strong Buy.' The fact that it trades above the average analyst price target of $380.06 could suggest that the stock is currently overpriced, or that there is limited upside potential according to analysts. However, the prevailing belief in WAT’s earnings capabilities could counter these concerns, impacting the stock prices positively.

Stocks: WAT