How did Waters perform in the fourth quarter of 2023?

Sales were $819 million, down 4.5% as reported and 8% in organic constant currency. Instrument system sales fell 14% as reported, while recurring revenues rose 7%. GAAP diluted EPS was $3.65 and non-GAAP EPS was $3.62, at the high end of guidance.

What did the Wyatt acquisition contribute?

For full-year 2023, the Wyatt acquisition contributed 2.5% to sales and diluted non-GAAP EPS by 1%. The filing also shows the acquisition added to goodwill, intangible assets and debt, and used $1,282,354 thousand of cash in 2023.

What is the company's outlook for 2024?

Full-year 2024 organic constant currency sales growth is guided to -0.5% to +1.5%, with reported growth of 0% to +2% including Wyatt. Non-GAAP EPS is guided to $11.75 to $12.05. For the first quarter, organic constant currency sales are guided to -11% to -9% and non-GAAP EPS to $2.05 to $2.15.

Which end markets and regions drove the 2023 results?

For full-year 2023, academic and government sales rose 13% as reported and 10% in organic constant currency, while pharmaceutical fell 3% as reported and 5% in organic constant currency. Industrial was flat. By region, Asia fell 11% as reported (China down more than 20%), while the Americas rose 5% and Europe rose 7%.

How did the balance sheet change?

Total assets rose to $4,626,854 thousand from $3,281,453 thousand at year-end 2022. Notes payable and debt increased to $2,355,513 thousand from $1,574,878 thousand, and stockholders' equity rose to $1,150,341 thousand from $504,488 thousand. Cash, cash equivalents and investments were $395,974 thousand.

WAT 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 6, 2024. Cited figures are marked; the original filing is the authoritative source.

Waters Corporation (NYSE: WAT) reported fourth-quarter and full-year 2023 results in this Item 2.02 8-K, furnished as Exhibit 99.1.

Fourth-quarter sales were $819 million^a, down 4.5% as reported and 8% in organic constant currency, which the company described as in line with guidance. GAAP diluted EPS was $3.65 and non-GAAP EPS was $3.62, at the high end of guidance. For fiscal 2023, sales were $2,956 million, down 0.5% as reported and 2% in organic constant currency.

GAAP diluted EPS was $10.84^b and non-GAAP EPS was $11.75. The Wyatt acquisition contributed 2.5% to sales for the year, and gross margin expanded 160 basis points to 59.6%. The filing shows a balance sheet that changed materially with the Wyatt acquisition.

Goodwill rose to $1,305,446 thousand^c from $430,328 thousand, and notes payable and debt increased to $2,355,513 thousand from $1,574,878 thousand. Business acquisitions used $1,282,354 thousand of cash in 2023. The press release notes that Wyatt added indebtedness and that the company's ability to service debt is a risk factor.

For 2024, Waters guided to full-year organic constant currency sales growth of -0.5% to +1.5% and reported sales growth of 0% to +2%, with non-GAAP EPS of $11.75 to $12.05^d. For the first quarter of 2024, it guided to organic constant currency sales growth of -11% to -9%, reported sales growth of -8.5% to -6.5%, and non-GAAP EPS of $2.05 to $2.15.

02—Key points

Key Highlights

Q4 2023 sales of $819 million declined 4.5% as reported and 8% in organic constant currency; instrument sales fell 14% while recurring revenues rose 7% as reported.
Full-year 2023 sales were $2,956 million, down 0.5% as reported; the Wyatt acquisition contributed 2.5% to sales.
Full-year 2023 GAAP diluted EPS was $10.84 versus $11.73 in 2022; non-GAAP EPS was $11.75 versus $12.02.
Gross margin expanded 160 basis points to 59.6% and adjusted operating margin expanded 70 basis points to 30.9% for 2023.
Full-year 2024 guidance: organic constant currency sales growth of -0.5% to +1.5% and non-GAAP EPS of $11.75 to $12.05.
First-quarter 2024 guidance: organic constant currency sales growth of -11% to -9% and non-GAAP EPS of $2.05 to $2.15.
Debt rose to $2,355,513 thousand from $1,574,878 thousand after the Wyatt acquisition, and goodwill more than tripled to $1,305,446 thousand.

03—Questions

Frequently Asked Questions

How did Waters perform in the fourth quarter of 2023?
Sales were $819 million, down 4.5% as reported and 8% in organic constant currency. Instrument system sales fell 14% as reported, while recurring revenues rose 7%. GAAP diluted EPS was $3.65 and non-GAAP EPS was $3.62, at the high end of guidance.
What did the Wyatt acquisition contribute?
For full-year 2023, the Wyatt acquisition contributed 2.5% to sales and diluted non-GAAP EPS by 1%. The filing also shows the acquisition added to goodwill, intangible assets and debt, and used $1,282,354 thousand of cash in 2023.
What is the company's outlook for 2024?
Full-year 2024 organic constant currency sales growth is guided to -0.5% to +1.5%, with reported growth of 0% to +2% including Wyatt. Non-GAAP EPS is guided to $11.75 to $12.05. For the first quarter, organic constant currency sales are guided to -11% to -9% and non-GAAP EPS to $2.05 to $2.15.
Which end markets and regions drove the 2023 results?
For full-year 2023, academic and government sales rose 13% as reported and 10% in organic constant currency, while pharmaceutical fell 3% as reported and 5% in organic constant currency. Industrial was flat. By region, Asia fell 11% as reported (China down more than 20%), while the Americas rose 5% and Europe rose 7%.
How did the balance sheet change?
Total assets rose to $4,626,854 thousand from $3,281,453 thousand at year-end 2022. Notes payable and debt increased to $2,355,513 thousand from $1,574,878 thousand, and stockholders' equity rose to $1,150,341 thousand from $504,488 thousand. Cash, cash equivalents and investments were $395,974 thousand.

04—Continue

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