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Waters 8-K Report, Financial Results (Nov 1, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed November 1, 2024
Period End
November 1, 2024
Security
WAT
In the record · 2016–202610-K1210-Q338-K109

WAT filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 109 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’16May ’16
  2. Material agreement8-K · Sep ’19Sep ’19
  3. Leadership change8-K · Dec ’22Dec ’22
  4. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed November 1, 2024. Cited figures are marked; the original filing is the authoritative source.

Waters Corporation (NYSE: WAT) furnished this Form 8-K under Item 2.02 (Results of Operations and Financial Condition) to report results for the third quarter ended September 28, 2024, attaching a press release dated November 1, 2024 as Exhibit 99.1.

Per that release, third-quarter net sales were $740.3 milliona, up 4% as reported and 4% in constant currency from $711.7 million a year earlier, with currency translation having minimal impact on sales. GAAP diluted EPS was $2.71 versus $2.27 in the prior-year quarter, and non-GAAP EPS was $2.93 versus $2.84. Management said instruments returned to growth, recurring revenues (service and chemistry) rose 6% as reported and 7% in constant currency, and all reported regions returned to growth.

The company raised its full-year 2024 guidance. Organic constant currency sales growth is now expected at -0.9% to -0.3%, with reported sales growth of -0.8% to -0.2%, and non-GAAP EPS is now expected at $11.67 to $11.87b. For the fourth quarter, the company expects constant currency sales growth of 5.0% to 7.0% and non-GAAP EPS of $3.90 to $4.10.

The release also notes that the Wyatt transaction contributed 1.3% to full-year reported sales and that it increased the company's indebtedness, a risk the company flags in its forward-looking statements. On the balance sheet, notes payable and debt fell to $1.83 billionc at September 28, 2024 from $2.36 billion at December 31, 2023, and nine-month operating cash flow was $522.0 million.

Nine-month GAAP net sales were $2.09 billiond, down from $2.14 billion, and nine-month GAAP diluted EPS was $6.83 versus $7.19. The filing also records a litigation provision of $11.6 million for the nine months.

02—Key points

Key Highlights

  1. Q3 2024 net sales of $740.3 million, up 4% as reported and 4% in constant currency, versus $711.7 million in Q3 2023
  2. GAAP diluted EPS of $2.71 (vs. $2.27) and non-GAAP diluted EPS of $2.93 (vs. $2.84); the release says results significantly exceeded guidance
  3. Instruments sales grew 1% and recurring revenues grew 6% as reported (7% constant currency), with all reported regions returning to growth
  4. Full-year 2024 guidance raised: organic constant currency sales growth of -0.9% to -0.3% and non-GAAP EPS of $11.67 to $11.87
  5. Q4 2024 guidance: constant currency sales growth of 5.0% to 7.0% and non-GAAP EPS of $3.90 to $4.10
  6. Total debt (notes payable and debt) decreased to $1.83 billion at September 28, 2024 from $2.36 billion at December 31, 2023
  7. Nine-month GAAP net sales of $2.09 billion versus $2.14 billion, with GAAP diluted EPS of $6.83 versus $7.19

03—Questions

Frequently Asked Questions

  1. How did Waters perform in the third quarter of 2024?

    Net sales were $740.3 million, up 4% as reported and in constant currency. GAAP diluted EPS was $2.71 and non-GAAP EPS was $2.93. The company said instruments returned to growth and that sales grew across all end markets, led by pharmaceutical and industrial.

  2. What changed in Waters' full-year 2024 outlook?

    The company raised its full-year 2024 sales and non-GAAP EPS guidance. Organic constant currency sales growth is now expected at -0.9% to -0.3%, reported sales growth at -0.8% to -0.2%, and non-GAAP EPS at $11.67 to $11.87, including an estimated headwind of approximately 3% from unfavorable foreign exchange.

  3. What is the fourth-quarter 2024 guidance?

    Waters expects fourth-quarter constant currency sales growth of 5.0% to 7.0%, or reported growth of 3.3% to 5.3% after a 1.7% currency translation decrease. Non-GAAP EPS is expected at $3.90 to $4.10.

  4. How did the Wyatt transaction affect the financials?

    The filing says the Wyatt acquisition added 1.3% to full-year 2024 reported sales for the first four-and-a-half months of the year. The forward-looking statements also flag the increased indebtedness from the Wyatt transaction as a risk, and the company made its first Wyatt retention bonus payment in the nine months ended September 28, 2024.

  5. How is Waters' debt position?

    Notes payable and debt were $1.83 billion at September 28, 2024, down from $2.36 billion at December 31, 2023. Net cash used in financing activities for the nine months included a net debt change of $530.0 million repaid.

04—Continue

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