Waters Corporation (NYSE: WAT) unveiled its financial performance for the first quarter of 2024. Sales for the quarter totaled $637 million, marking a 7% decline compared to the first quarter of 2023, which reported sales of $685 million. The decrease was primarily attributed to a 1% impact from currency translation, offset by a 3% increase due to acquisitions.
On a GAAP basis, diluted earnings per share (EPS) for Q1 2024 stood at $1.72, down from $2.38 in Q1 2023. Non-GAAP EPS for the same period was $2.21, compared to $2.49 in Q1 2023. This includes a 4% headwind due to unfavorable foreign exchange rates.
Dr. Udit Batra, President & CEO of Waters Corporation, commented, “Our first quarter revenues exceeded our guidance, reflecting strong execution by our team. Margin expansion highlights our operational strength despite volume and foreign exchange challenges. With our focus on innovation and growth areas, we remain well-positioned in our markets.”
Highlights from the quarter include a 3% decrease in sales to the pharmaceutical market, a 7% decrease in sales to the industrial market, and a 25% decrease in sales to the academic and government market.
Instrument system sales declined by 20%, while recurring revenues, comprising service and precision chemistries, increased by 3%.
Geographically, sales in Asia decreased by 18%, in the Americas by 2%, and in Europe increased by 2%.
Looking ahead, for the full-year 2024, Waters Corporation anticipates organic constant currency sales growth to range between -0.5% and +1.5%. Full-year non-GAAP EPS is expected to be in the range of $11.75 to $12.05, including an estimated 2% headwind due to unfavorable foreign exchange.
For the second quarter of 2024, organic constant currency sales growth is projected to be between -6.0% and -4.0%. Second quarter non-GAAP EPS is expected to range from $2.50 to $2.60, including an estimated 4% headwind due to unfavorable foreign exchange.
Waters Corporation will host a webcast of its first quarter 2024 financial results conference call on May 7, 2024, at 8:00 a.m. Eastern Time. Details for accessing the webcast and accompanying slide presentation can be found on the company’s website under Investor Relations. A replay will be available until June 4, 2024, via webcast or by phone at (800) 839-9317.
