#USA #financial results #Milford #Q4 2024 #Waters Corporation

Waters Corporation Reports Impressive Financial Results for Q4 and Full Year 2024

Waters Corporation (NYSE: WAT) recently announced its financial performance for the fourth quarter and the entire year of 2024, showcasing robust growth across various metrics. The company reported that its fourth-quarter sales reached $873 million, exceeding expectations and reflecting a 6% increase compared to the previous year. When adjusted for constant currency, the growth is even more pronounced at 8%. This positive trend underscores the company's effective operational strategies and market presence.

Key Highlights of Q4 2024

During the fourth quarter, Waters Corporation achieved notable growth in its core segments. Instrument sales increased by 8% while recurring revenue saw a robust 9% increase when adjusted for currency fluctuations. Driving this success was the pharmaceutical market, where sales grew by 10% in constant currency. This indicates a strong demand for their solutions, particularly in a segment that is crucial for health and wellness.

Dr. Udit Batra, President and CEO of Waters Corporation, commented on these results, stating, “Our team has done a commendable job delivering strong performance while navigating challenges posed by foreign exchange and inflation.” Such an affirmation from leadership reflects an optimistic outlook as the company continues to execute its strategic initiatives effectively.

Full-Year Overview

Looking at the year as a whole, Waters' total sales for 2024 reached $2,958 million, which was flat compared to the $2,956 million recorded in 2023. Adjusted earnings per share on a GAAP basis settled at $10.71. This slight dip in revenue, however, was balanced by a higher operating margin, with operational excellence driving the adjusted operating income margin to 31%.

The impact of foreign exchange was felt in 2024, accounting for approximately a 5% decline in earnings. Despite these headwinds, the company demonstrated its resilience by generating $762 million in operating cash flow and achieving a free cash flow ratio of 105% to adjusted net income.

Geographic Performance Breakdown

Performance varied across international markets, with sales in Europe marking an impressive growth of 10% as reported and 11% in constant currency. Asia demonstrated a steady growth of 4%, while sales in the Americas remained stable with a 6% increase. Notably, the academic and government sectors saw a 15% surge in sales, highlighting Waters' solid footing in diverse markets.

Looking Forward to 2025

For 2025, Waters Corporation anticipates a constant currency sales growth of 4.5% to 7% with an approximate 2% decline due to currency translation. Non-GAAP earnings per share are projected to fall between $12.70 to $13.00, factoring in foreign exchange challenges. The company remains poised for further growth, maintaining a focus on operational efficiencies and leveraging its innovative product lines.

Conclusion

The fourth-quarter and full-year results for 2024 position Waters Corporation for exciting future opportunities. With a strategic focus on growth and resilience amid economic challenges, the company looks set to thrive in the years ahead. These results serve as a testament to the strength and adaptability of Waters Corporation in the analytical instruments sector, reinforcing its status as a leader in the industry for over 65 years.