- Waters Corp (NYSE: NYSE:WAT) reported first-quarter FY22 revenue growth of 16% year-on-year in CC to $690.6 million, above the consensus of $632.8 million.
- Sales into the pharmaceutical market increased 19% in CC, sales into the industrial market increased 17% in CC, and sales into the academic and government markets increased 4% in CC.
- Recurring revenues increased 9% in CC, while instrument system sales increased 26% in CC.
- Geographically, sales in Asia increased 14%, sales in the Americas increased 26% (with U.S. sales growing 28%), and sales in Europe increased 9% in CC.
- The non-GAAP operating income margin expanded by 170 basis points to 30.3%.
- Non-GAAP EPS of $2.80 beat the consensus of $2.32.
- Waters generated $197.96 million in operating cash flow.
- "This was a record first quarter for Waters' sales, led by instruments which grew 26% in constant currency, while our recurring revenues grew 9% in constant currency, reflecting continued demand across our geographies and end-markets," CEO Dr. Udit Batra said.
- Outlook: Waters sees Q2 revenue of $695.3 million - $708.9 million versus the consensus of $706.5 million. Waters sees non-GAAP EPS of $2.55 - $2.65, below the consensus of $2.78.
- Waters raised constant currency sales growth outlook to 7.5% - 9% (prior view 5% - 7%), representing sales of $2.91 billion - $2.95 billion versus the consensus of $2.93 billion. Waters sees non-GAAP EPS of $11.90 - $12.10 (prior view $11.75 - $12.00) versus the consensus of $11.9.
- Price Action: WAT shares are trading 7.69% higher at $325.73 on the last check Tuesday.
Read at Benzinga