Waters Expects Q1 Profit to Fall Below Estimates Amid Revenue Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
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Should l Buy WAT?
Source: Newsfilter
- Q1 Profit Forecast: Waters anticipates Q1 earnings per share between $2.25 and $2.35, falling short of analysts' average estimate of $2.51, which has led to a nearly 12% drop in premarket trading, indicating investor concerns about future performance.
- Acquisition Impact: Despite the disappointing Q1 outlook, Waters expects its $17.5 billion acquisition of Becton Dickinson's bioscience and diagnostics business to drive overall profit growth in 2026, projecting a 5.3% sales increase, highlighting the strategic importance of the acquisition.
- Becton Dickinson Performance: Becton Dickinson reported an 8.3% year-over-year revenue decline in its life sciences segment for the quarter ending December 31, with sales of $766 million, significantly below analysts' expectations of $1.3 billion, indicating challenges in the integration process.
- Full-Year Revenue Outlook: Waters forecasts organic revenue for 2026 to be between $3.35 billion and $3.40 billion, slightly above the market estimate of $3.36 billion, with the acquired Becton Dickinson unit expected to contribute approximately $3 billion to reported revenue, further strengthening the company's market position.
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Analyst Views on WAT
Wall Street analysts forecast WAT stock price to rise
13 Analyst Rating
8 Buy
5 Hold
0 Sell
Moderate Buy
Current: 319.830
Low
350.00
Averages
414.08
High
480.00
Current: 319.830
Low
350.00
Averages
414.08
High
480.00
About WAT
Waters Corporation offers analytical instruments, separations technologies, and software, serving the life, materials, food, and environmental sciences. The Company's segments include Waters and TA. The Company primarily designs, manufactures, sells and services high-performance liquid chromatography (HPLC), ultra-performance liquid chromatography (UPLC and together with HPLC, referred to as LC) and mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products and comprehensive post-warranty service plans. The Company designs, manufactures, sells and services thermal analysis, rheometry and calorimetry instruments through its TA Instruments (TA) product line. The Company is also a developer and supplier of advanced software-based products that interface with the Company’s instruments, as well as other manufacturers’ instruments. It operates directly in over 35 countries and has products available in more than 100 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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