Waters(US:WAT)2024-11-01 10:04Financial Performance - Sales for Q3 2024 were $740 million, a 4% increase from $712 million in Q3 2023[2] - GAAP EPS for Q3 2024 was $2.71, up from $2.27 in Q3 2023; non-GAAP EPS was $2.93, compared to $2.84 in Q3 2023[3] - Recurring revenue grew by 6% as reported and 7% in constant currency during the quarter[6] - The company raised its full-year 2024 non-GAAP EPS guidance to a range of $11.67 to $11.87[9] - Fourth quarter 2024 constant currency sales growth is expected to be between 5% and 7%[10] - The company expects full-year 2024 reported sales growth to be in the range of -0.8% to -0.2%[8] - For the three months ended September 28, 2024, Waters Corporation reported net sales of $740,305,000, a 4% increase from $711,692,000 in the same period of 2023[18] - The total recurring revenue for the three months ended September 28, 2024, was $417,229,000, representing a 6% increase from $392,261,000 in the same period of 2023[18] - The company reported a constant currency growth rate of 4% for total net sales in the three months ended September 28, 2024[18] - Organic constant currency growth for the nine months ended September 28, 2024, was reported at -3%, indicating a challenging market environment[19] Market Segments - Sales in the pharmaceutical market increased by 2% as reported and 3% in constant currency[5] - Instrument system sales increased by 1% as reported and in constant currency[6] - Sales in Asia increased by 5% as reported and 6% in constant currency during the quarter[6] - The Asia region experienced a 7% decline in sales, totaling $696,319,000 compared to $745,932,000 in the previous year[19] - The Pharmaceutical market reported net sales of $1,220,092,000, a decrease of 1% from $1,233,177,000 in the prior year[19] - The Chemistry product line saw an 8% growth in sales, reaching $138,935,000 compared to $128,650,000 in the previous year[18] - The Americas region's sales were $794,775,000, showing a slight decline of 1% from $804,827,000 in the prior year[19] Financial Position - Total assets decreased from $4.626 billion as of December 31, 2023, to $4.512 billion as of September 28, 2024[23] - Total liabilities decreased from $3.477 billion to $2.909 billion during the same period[23] - Cash, cash equivalents, and investments decreased from $395.974 million to $331.458 million[23] - Accounts receivable decreased from $702.168 million to $669.534 million[23] - Inventories slightly increased from $516.236 million to $518.994 million[23] Income and Cash Flow - The company reported a net income of $136.113 million for the nine months ended September 28, 2024, with an adjusted EPS of $6.83[22] - Net income for the three months ended September 28, 2024, was $161,503 thousand, an increase of 19.98% compared to $134,552 thousand for the same period in 2023[24] - Net cash provided by operating activities for the nine months ended September 28, 2024, was $521,984 thousand, up 40.05% from $372,687 thousand in the same period of 2023[24] - Net cash used in investing activities for the nine months ended September 28, 2024, was $91,910 thousand, compared to $1,404,321 thousand in the same period of 2023[24] Projections - Projected organic constant currency sales growth rate for the twelve months ending December 31, 2024, is estimated at (0.9%)[25] - Projected GAAP earnings per diluted share for the twelve months ending December 31, 2024, is expected to be between $10.55 and $10.75[25] - Adjusted non-GAAP earnings per diluted share for the twelve months ending December 31, 2024, is projected to be between $11.67 and $11.87[25] - The company experienced a currency translation impact of (1.2%) on sales growth rate as reported for the twelve months ending December 31, 2024[25] Other Financial Metrics - The company recognized a retention bonus obligation of $15.268 million related to the Wyatt acquisition[22] - Adjusted Non-GAAP EPS for the nine months ended September 30, 2023, was $8.13, reflecting a 29.4% increase[22] - Stock-based compensation for the three months ended September 28, 2024, was $10,647 thousand, an increase from $8,490 thousand in the same period of 2023[24] - The company reported a net change in debt of $(180,000) thousand for the three months ended September 28, 2024, compared to $(125,181) thousand for the same period in 2023[24]