Waters raises annual revenue outlook after organic growth
Waters raised its annual revenue outlook after reporting quarterly revenue of 1.767 billion dollars. Existing operations grew alongside contributions from acquired biosciences and diagnostic businesses. Adjusted earnings per share increased, while reported earnings fell as acquisition accounting and related expenses weighed on the result. The company now expects annual revenue between 6.479 billion dollars and 6.497 billion dollars.
Economics & Markets··Evening
Organic operations and acquired businesses grow
Waters, a laboratory analysis and diagnostics company, raised its annual outlook after reporting third-quarter revenue of 1.767 billion dollars. Adjusted earnings per share increased 21 per cent to 4.10 dollars. The results included revenue from its acquired biosciences and diagnostic businesses alongside growth in its existing operations.[1], [2]
Organic revenue reached 871 million dollars, compared with 800 million dollars a year earlier. That represented growth of 9 per cent as reported and 10 per cent at constant exchange rates. Acquired Biosciences and Diagnostic Solutions operations contributed 896 million dollars, against 885 million dollars on a prior-year comparable basis. Those historical figures include expenses allocated by the previous owner using revenue and headcount, which may differ from the businesses’ costs within Waters.[1]
Acquisition charges lower reported earnings
Reported diluted earnings per share fell to 0.82 dollars from 2.50 dollars. Waters attributed that decline to purchase accounting charges, acquisition expenses and restructuring costs. Adjusted earnings per share, which exclude specified items, increased from 3.40 dollars. The company therefore reported a lower statutory per-share result alongside an increase in the adjusted measure used in its annual guidance.[1]
Analytical Sciences revenue rose from 649 million dollars to 703 million dollars. Biosciences generated 396 million dollars against 387 million dollars. Diagnostic Solutions revenue increased from 498 million dollars to 500 million dollars, and the Clinical Business Unit grew from 64 million dollars to 75 million dollars. Materials Sciences revenue was 93 million dollars, up from 87 million dollars. These divisions cover the company’s analytical, biosciences, diagnostic and materials operations.[1]
Annual revenue midpoint rises 43 million dollars
Management raised the midpoint of annual revenue guidance by 43 million dollars to a range of 6.479 billion dollars to 6.497 billion dollars. It expects organic constant-currency growth of 9.1–9.7 per cent and approximately 3.050 billion dollars of acquired-business revenue for the owned period. Annual adjusted earnings per share are projected at 14.60–14.70 dollars. Fourth-quarter guidance calls for revenue of 1.801 billion dollars to 1.819 billion dollars and adjusted earnings per share of 4.58–4.68 dollars.[1]
