NEW YORK — Waters on Wednesday morning reported a 4 percent year-over-year drop in second quarter revenues.
For the three-month period ended June 30, Waters' revenues fell to $708.5 million from $740.6 million the year before but beat the consensus Wall Street estimate of $700.0 million.
The beat was driven by better-than-expected performance in China as well as higher-than-expected revenue contributions from recent acquisition Wyatt, the company said in a statement.
Currency translation decreased sales by 2 percent, and acquisitions boosted them by 2 percent. Organic revenues were down 4 percent year over year.
Instrument sales were $294.1 million during the quarter, down 14 percent from $342.0 million in Q2 2023. Recurring revenues were $414.5 million, up 4 percent from $398.6 million in Q2 2023.
Waters' Q2 net income was $142.7 million, or $2.40 per share, compared to $150.6 million, or $2.55 per share, a year ago. On a non-GAAP basis, the company reported EPS of $2.63, beating analysts' average estimate of $2.56 per share.
The Milford, Massachusetts-based company's R&D spending was $46.2 million, up less than 1 percent from $45.9 million in Q2 2023. Its SG&A expenses were $173.2 million, down 7 percent from $187.0 million in the year-ago period.
The company lowered its full-year 2024 revenue guidance, now expecting sales to decline between 2.2 percent and 0.7 percent. It had previously projected revenue growth of up to 2 percent. The firm lowered its guidance for full-year non-GAAP EPS to a range of $11.55 to $11.65, down from a previous range of $11.75 to $12.05. Analysts estimate full-year non-GAAP EPS of $11.78.
For Q3 2024, Waters expects sales to range between a 0.5 percent decline and a 1.5 percent increase and non-GAAP EPS between $2.60 and $2.70.
Waters ended the quarter with $327.4 million in cash, cash equivalents, and investments.
On Wednesday morning on the New York Stock Exchange, Waters shares were up 3 percent to $336.26.