This specialty measurement company beat analysts’ estimates by $0.03 last quarter.
Waters Corporation (WAT)
From The Buyback Letter
The world’s leading specialty measurement company, Waters Corporation (WAT) sells and services analytical instruments like chromatography, mass spectrometry and thermal analysis for the life science, materials and food sciences industries for more than 60 years. It has some 7,200 employees worldwide, and operates directly in 35 countries, including 15 manufacturing facilities. Its products are available in more than 100 countries. It is based in Massachusetts, and is a member of the S&P 500.
WAT had Q2 non-GAAP earnings of $2.14 per share, beating the estimate by 3 cents. The figure improved 10% on a year-over-year basis and 33.7% sequentially. Net sales were $599.2 million, up 0.5% from the year-ago quarter and 16.6% from the previous quarter. Improved performance in the pharmaceutical market contributed to the results. Q3 sales growth of 2%-4% is expected.
The company has a good long-term record. Over the last 10 years, the stock has climbed nearly 400%. Over the last five years, revenue has grown 7+%. The return on equity of 41+% and return on assets of 16+% are outperforming more than 3/4 of the companies in the Medical Diagnostics and Research industry.
In the last 12 months, management has reduced shares outstanding by 11.319%.
David R. Fried, The Buyback Letter, www.buybackletter.com, 888-289-2225, August 21, 2019