Waters Stock Soars after Strong Financial Results

Stock performance

Yesterday, Waters (WAT) stock closed at $229.51, ~12.69% higher than its prior closing price of $203.66 and ~37% higher than its 52-week low of $167.93 on October 23. It also hit a 52-week high yesterday, of $229.70. This year, the stock has risen 22% from $188.65.

Waters Stock Soars after Strong Financial Results

Financials in a nutshell

Waters presented its fourth-quarter and 2018 financial results yesterday. The company’s net sales grew ~4.8% YoY (year-over-year) from $2.3 billion to $2.4 billion in fiscal 2018, and its revenue rose ~4% YoY to $715.0 million in the fourth quarter.

Meanwhile, analysts expect Waters’ medical equipment peers Dentsply Sirona (XRAY), Thermo Fisher Scientific (TMO), and Danaher (DHR) to post fourth-quarter revenue $1.0 billion, $6.2 billion, and $5.3 billion, respectively, representing a ~6.0% YoY decline, ~3.03% YoY growth, and ~4.52% YoY growth.

In fiscal 2018, Waters’ net income and diluted EPS rose YoY to $593.8 million and $7.65, respectively, from $20.1 million and $0.25. In the fourth quarter, the company ‘s net income and diluted EPS rose YoY to $185.2 million and $5.46, respectively, from -$353.2 million and -$4.44.

Waters’ and Danaher’s revenue growth could boost the Invesco Water Resources ETF (PHQ), of which WAT and DHR comprise ~9.14% and ~7.89%, respectively.

Analysts’ recommendations

Of the 17 analysts tracking Waters, one recommends “strong buy,” 14 recommend “buy,” and two recommend “sell.” Their consensus target price of $218.66 for WAT implies a ~4.64% decline over the next 12 months.