Waters (NYSE:WAT) Shares Gap Up on Better-Than-Expected Earnings

Waters Corporation (NYSE:WAT)’s stock price gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $301.88, but opened at $338.09. Waters shares last traded at $338.2970, with a volume of 330,174 shares traded.

The medical instruments supplier reported $2.70 earnings per share for the quarter, beating the consensus estimate of $2.31 by $0.39. The business had revenue of $1.27 billion for the quarter, compared to analysts’ expectations of $1.20 billion. Waters had a return on equity of 34.79% and a net margin of 20.30%.The business’s revenue was up 91.4% on a year-over-year basis. During the same period in the previous year, the firm posted $2.25 EPS. Waters has set its Q2 2026 guidance at 2.950-3.050 EPS and its FY 2026 guidance at 14.400-14.600 EPS.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. Wall Street Zen cut Waters from a “buy” rating to a “hold” rating in a research report on Sunday, February 8th. UBS Group lowered their price objective on Waters from $370.00 to $330.00 and set a “neutral” rating for the company in a research note on Monday, April 13th. Bank of America lowered their price objective on Waters from $410.00 to $350.00 and set a “neutral” rating for the company in a research note on Tuesday, February 10th. Wells Fargo & Company lowered their price objective on Waters from $415.00 to $355.00 and set an “equal weight” rating for the company in a research note on Wednesday, February 11th. Finally, The Goldman Sachs Group upgraded Waters to a “strong-buy” rating in a research note on Wednesday, April 1st. Three research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and eight have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $387.53.

Insider Transactions at Waters

In other Waters news, Director Wei Jiang acquired 500 shares of the stock in a transaction that occurred on Monday, March 16th. The shares were acquired at an average cost of $289.46 per share, with a total value of $144,730.00. Following the transaction, the director owned 3,441 shares of the company’s stock, valued at $996,031.86. The trade was a 17.00% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 0.31% of the company’s stock.

Hedge Funds Weigh In On Waters

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Pinnacle Associates Ltd. lifted its position in Waters by 0.3% in the 4th quarter. Pinnacle Associates Ltd. now owns 7,608 shares of the medical instruments supplier’s stock valued at $2,890,000 after acquiring an additional 26 shares in the last quarter. Exencial Wealth Advisors LLC lifted its position in Waters by 1.7% in the 4th quarter. Exencial Wealth Advisors LLC now owns 1,681 shares of the medical instruments supplier’s stock valued at $638,000 after acquiring an additional 28 shares in the last quarter. Rosenberg Matthew Hamilton lifted its position in Waters by 8.8% in the 4th quarter. Rosenberg Matthew Hamilton now owns 359 shares of the medical instruments supplier’s stock valued at $136,000 after acquiring an additional 29 shares in the last quarter. Clearstead Advisors LLC lifted its position in Waters by 5.1% in the 4th quarter. Clearstead Advisors LLC now owns 616 shares of the medical instruments supplier’s stock valued at $234,000 after acquiring an additional 30 shares in the last quarter. Finally, Integrated Wealth Concepts LLC lifted its position in Waters by 2.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 1,048 shares of the medical instruments supplier’s stock valued at $386,000 after acquiring an additional 30 shares in the last quarter. 94.01% of the stock is owned by institutional investors.

Waters Price Performance

The firm has a market capitalization of $33.52 billion, a P/E ratio of 31.63, a PEG ratio of 1.99 and a beta of 1.14. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.27 and a current ratio of 1.73. The firm has a 50-day moving average of $309.75 and a 200-day moving average of $351.98.

About Waters

Waters Corporation is a global provider of analytical instruments, software and services for laboratory and research applications. The company designs, manufactures and sells technologies centered on liquid chromatography, mass spectrometry, separation science, and related sample preparation and detection systems. Its product portfolio includes chromatographs, mass spectrometers, columns and consumables, laboratory informatics and workflow software, as well as technical support and training services that help customers run and interpret complex analyses.

Waters serves a wide range of end markets that include pharmaceutical and biotechnology companies, contract research and testing laboratories, academic and government research institutions, clinical diagnostics, food and environmental testing, and industrial and chemical manufacturers.