NEW YORK – Waters on Tuesday reported that its fourth quarter 2023 revenues were down 5 percent compared to the year-ago period, while full-year revenues were down 1 percent.
For the three months ended Dec. 31, Waters' revenues were $819.5 million versus $858.5 million in Q4 2022 and above the consensus Wall Street estimate of $815.0 million.
Instrument system sales in the quarter decreased 14 percent as reported and 20 percent in organic constant currency. The firm's recurring revenues, which includes service and precision chemistries, increased 7 percent as reported and 5 percent in organic constant currency.
For Q4, Waters posted net income of $216.2 million, or $3.65 per share, compared to net income of $227.1 million, or $3.81 per share, in Q4 2022. On an adjusted basis, the company reported EPS of $3.62, beating the consensus Wall Street estimate of $3.55 per share.
R&D spending in the quarter was down 8 percent year over year to $44.4 million from $48.3 million, while SG&A costs rose 4 percent to $180.4 million from $174.3 million.
Revenues for full-year 2023 were $2.96 billion versus $2.97 billion in 2022, slightly surpassing the Wall Street average estimate of $2.95 billion.
Profits for the year were $642.2 million, or $10.84 per share, compared to $707.8 million, or $11.73 per share, in 2022. Adjusted EPS was $11.75, beating analysts' consensus estimate of $11.69 per share.
For full-year 2023, R&D spending was $174.9 million, down 1 percent from $176.2 million in 2022. SG&A spending was up 12 percent to $736.0 million from $658.0 million the year before.
Waters ended the year with $396.0 million in cash, cash equivalents, and investments.
For Q1 2024, Waters projects an organic constant currency revenue decline of between 9 percent and 11 percent and adjusted EPS between $2.05 and $2.15. Currency translation is expected to decrease Q1 revenues by 1 percent, while the company's acquisition of Wyatt is expected to increase revenues by 3.5 percent, making for a decline in reported revenues of between 6.5 percent and 8.5 percent.
Organic constant currency revenue growth for full-year 2024 is expected to be between -0.5 percent and 1.5 percent, with anticipated adjusted EPS between $11.75 and $12.05. Currency translation is expected to decrease full-year 2024 revenues by 1 percent, while the Wyatt acquisition is expected to increase revenues by 1.3 percent, making for growth of reported revenues between 0 percent and 2 percent.
Analysts are expecting Q1 earnings of $2.39 per share and full-year 2024 earnings of $11.97 per share.
In Tuesday morning trading on the New York Stock Exchange, shares of Waters were down less than 1 percent to $324.35.