Waters(WAT) ZACKS·2025-02-13 18:25Core Insights - Waters Corporation reported strong fourth-quarter 2024 results with non-GAAP earnings of $4.10 per share, exceeding the Zacks Consensus Estimate by 1.99% and reflecting a 13.3% year-over-year increase from $3.62 [1][3] - Net sales reached $872.7 million, surpassing the Zacks Consensus Estimate of $857 million, marking a 6.5% increase on a reported basis and an 8% increase on a constant-currency basis compared to the previous year [2][3] Financial Performance - The company experienced double-digit growth in the Pharma segment, with instrument sales and recurring revenue showing high-single-digit gains in constant currency [3] - Non-GAAP selling and administrative expenses decreased by 2.6% year-over-year to $168.5 million, representing a contraction of 180 basis points as a percentage of net sales [8] - Research and development spending rose by 8.9% year-over-year to $46.3 million, with the adjusted operating margin increasing by 60 basis points to 35.5% [9] Sales Breakdown - Waters operates under two segments: Waters (87.6% of net sales) with sales of $764.3 million, up 6.6% year-over-year, and TA (12.4% of net sales) with sales of $108.4 million, reflecting 5.7% growth [4] - Sales by product category included Instruments at $419.6 million (48.1% of net sales, up 5.6%), Services at $301.8 million (34.6% of net sales, up 8.2%), and Chemistry at $151.3 million (17.3% of net sales, up 5.5%) [5] Market and Geographic Performance - The Pharmaceutical market generated $498.8 million in sales (57.2% of net sales), increasing by 7.6% year-over-year, while the Industrial market saw sales of $264 million (30.3% of net sales, up 1.5%) and the Governmental and Academic market generated $109.9 million (12.6% of net sales, up 15%) [6] - Geographic sales included Asia at $272.9 million (31.3% of net sales, up 4.2%), the Americas at $321 million (36.8% of net sales, up 5.7%), and Europe at $278.8 million (31.9% of net sales, up 9.8%) [7] Cash Flow and Guidance - As of December 31, 2024, Waters had cash, cash equivalents, and investments totaling $325.4 million, with cash from operations increasing to $240.1 million from $204.6 million in the prior quarter [10] - For Q1 2025, Waters expects non-GAAP earnings of $2.17-$2.25 per share, with organic sales growth anticipated at 4-7% on a constant-currency basis, while total sales growth is projected at 1-4% [11][12]