Waters Corp Predicts Q1 Profit Shortfall Due to Strong Dollar Impact
Waters Corp. (WAT) anticipates a decline in its first-quarter profit, surpassing analysts' forecasts on Wednesday. The company attributes this decline to the strengthening of the U.S. dollar.
Q1 Profit Projections
Waters projects adjusted earnings per share between $2.17 and $2.25, below the consensus estimate of $2.42 set by analysts at LSEG. Due to the stronger dollar, the company expects a 7% impact on its Q1 profit and a 4% impact for the full year.
2025 Profit Outlook
Waters forecasts adjusted earnings per share between $12.70 and $13.00 for 2025, which aligns with analysts' expectations of $12.85.
Impact of Strong Dollar
A stronger dollar can erode the profits of companies with extensive international operations, as they convert foreign currencies into dollars.
Q4 Performance
Despite the anticipated Q1 profit decline, Waters exceeded expectations for its fourth-quarter earnings and revenue. Robust demand for its products in drug development and manufacturing contributed to this strong performance.
Revenue Growth
Waters experienced revenue growth in the Indian market and from its unit specializing in quality assurance and control for pharmaceutical companies.
Peer Performance
Thermo Fisher Scientific, Waters' larger competitor, also surpassed Q4 expectations due to high demand for analytical instruments.
Financial Details
Waters' quarterly revenue increased by 6% to $872.7 million for the quarter ending December 31, exceeding the analyst consensus of $857.2 million. On an adjusted basis, the company earned $4.10 per share, surpassing the average analyst estimate of $4.03.