NEW YORK — Waters on Tuesday reported a 7 percent year-over-year drop in first quarter revenues, with declines across all of the company's business segments.
For the three-month period ended March 31, Waters' revenues fell to $636.8 million from $684.7 million the year before, but beat the consensus Wall Street estimate of $635.6 million.
Organic revenues were down 9 percent year over year, with currency translation decreasing sales by 1 percent and acquisitions boosting them by 3 percent.
Instrument sales were $241.9 million during the quarter, down 20 percent from $302.9 million in Q1 2023. Recurring revenues were $394.9 million, up 3 percent from $381.7 million in Q1 2023.
Waters posted net income of $102.2 million, or $1.72 per share, compared to a profit of $140.9 million, or $2.38 per share, in Q1 2023. Non-GAAP earnings per share in Q1 2024 were $2.21, topping the consensus Wall Street estimate of $2.10 per share.
The Milford, Massachusetts-based company's R&D costs in the quarter increased 4 percent to $44.6 million from $42.7 million, while SG&A spending fell 4 percent to $174.5 million from $182.0 million.
Waters projected a decline in Q2 2024 revenues of between 4.5 percent and 6.5 percent and Q2 2024 non-GAAP EPS of between $2.50 and $2.60, below the consensus Wall Street estimate of $2.77. It said it expects a decline in Q2 2024 organic revenues of between 4 percent and 6 percent, with currency translation expected to decrease sales by roughly 2 percent and the Wyatt acquisition expected to increase sales by roughly 1.5 percent.
Waters maintained its full-year 2024 guidance, projecting revenue growth of between 0 percent and 2 percent and full-year non-GAAP EPS in the range of $11.75 and $12.05. Analysts estimate full-year non-GAAP EPS of $11.89.
The company said it expects full-year 2024 organic revenue growth of between -0.5 percent to 1.5 percent, with currency translation expected to decrease revenues by slightly less than 1 percent and the company's acquisition of Wyatt to increase revenues by slightly more than 1 percent.
Waters finished the quarter with $338.2 million in cash, cash equivalents, and investments.
In Tuesday morning trading on the New York Stock Exchange, Waters stock was up 2 percent to $321.92.