A Glimpse of Waters's Earnings Potential
Waters (NYSE:WAT) is set to give its latest quarterly earnings report on Monday, 2025-08-04. Here's what investors need to know before the announcement.
Analysts estimate that Waters will report an earnings per share (EPS) of $2.94.
The market awaits Waters's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Performance in Previous Earnings
The company's EPS beat by $0.03 in the last quarter, leading to a 1.9% increase in the share price on the following day.
Here's a look at Waters's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 2.22 | 4.03 | 2.68 | 2.56 |
| EPS Actual | 2.25 | 4.10 | 2.93 | 2.63 |
| Price Change % | 2.0% | -1.0% | 20.0% | 5.0% |
Market Performance of Waters's Stock
Shares of Waters were trading at $288.76 as of July 31. Over the last 52-week period, shares are down 13.21%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Analysts' Perspectives on Waters
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Waters.
With 5 analyst ratings, Waters has a consensus rating of Neutral. The average one-year price target is $358.2, indicating a potential 24.05% upside.
Comparing Ratings Among Industry Peers
In this analysis, we delve into the analyst ratings and average 1-year price targets of West Pharmaceutical Servs, Illumina and Medpace Hldgs, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for West Pharmaceutical Servs, with an average 1-year price target of $305.0, suggesting a potential 5.62% upside.
- Analysts currently favor an Neutral trajectory for Illumina, with an average 1-year price target of $106.77, suggesting a potential 63.02% downside.
- Analysts currently favor an Neutral trajectory for Medpace Hldgs, with an average 1-year price target of $410.88, suggesting a potential 42.29% upside.
Comprehensive Peer Analysis Summary
The peer analysis summary provides a snapshot of key metrics for West Pharmaceutical Servs, Illumina and Medpace Hldgs, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Waters | Neutral | 3.90% | $384.96M | 6.40% |
| West Pharmaceutical Servs | Buy | 9.17% | $273.90M | 4.70% |
| Illumina | Neutral | -3.25% | $683M | 5.53% |
| Medpace Hldgs | Neutral | 14.24% | $180.01M | 23.57% |
Key Takeaway:
Waters ranks in the middle for consensus rating. It is at the bottom for revenue growth. It is at the top for gross profit. It is at the bottom for return on equity.
Discovering Waters: A Closer Look
Water sells liquid chromatography, mass spectrometry, and thermal analysis tools. These analytical instruments provide essential information on various products, such as their molecular structures and physical properties, to help clients enhance the health and well-being of end users. As a percentage of sales in 2024, Waters generated 58% from biopharmaceutical customers, 31% from industrial clients, and 11% from academic/government institutions. In early 2026, Waters plans to merge with BD's life science and diagnostics business, which will substantially change those concentrations. Waters will wind up with more concentration in diagnostics (versus none now) and discovery-related life science tools.
Breaking Down Waters's Financial Performance
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Positive Revenue Trend: Examining Waters's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.9% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 18.34%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Waters's ROE stands out, surpassing industry averages. With an impressive ROE of 6.4%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.65%, the company showcases effective utilization of assets.
Debt Management: With a below-average debt-to-equity ratio of 0.78, Waters adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for Waters visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.