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Waters Q3 Sales Rise 7 Percent

NEW YORK – Waters on Tuesday reported that its third quarter revenues increased 7 percent year over year on strong instrument sales.

The Milford, Massachusetts-based maker of mass spectrometry systems and other analytical instruments generated net sales of $708.6 million for the three months ended Oct. 1 compared to $659.2 million for Q3 2021. Its sales were up 15 percent at constant currency and beat analysts' consensus estimate for revenues of $679.8 million.

The firm said its instrument sales increased 14 percent year over year or 21 percent at constant currency to $336.8 million, while service and precision chemistries sales were up 2 percent or 10 percent at constant currency to $371.7 million.

Waters President and CEO Udit Batra said in a press release that the firm's "commercial momentum is well supported by revitalized innovation across the portfolio," citing the Arc HPLC system, Xevo TQ Absolute mass spec system, MaxPeak Premier columns, and TA Instruments Discovery Rheometers.

Waters posted net income of $156.0 million, or $2.60 per share, for the quarter versus $161.2 million, or $2.60 per share, for Q3 2021. On a non-GAAP basis, EPS for the quarter was $2.64 versus $2.66 for the prior year's third quarter, surpassing the consensus Wall Street estimate of $2.57.

Its SG&A costs rose to $164.4 million from $152.5 million, while its R&D spending was up slightly to $43.3 million from $42.0 million.

Waters finished the quarter with $444.5 million in cash, cash equivalents and investments.

The firm expects to report full-year sales growth at constant currency in the range of 11.5 percent to 12 percent.