MILFORD, Mass. - Waters Corporation (NYSE:WAT) reported adjusted EPS of $2.21, which was $0.12 higher than the analyst consensus of $2.09. However, revenue saw a decrease, coming in at $637 million, a 7% drop from the $685 million reported in the first quarter of the previous year, albeit slightly above the consensus estimate of $635.57 million.
The company's operational excellence was highlighted by a gross margin expansion of 40 basis points and an adjusted operating margin expansion of 20 basis points. Despite the revenue decline, Waters Corporation's strong operating cash flow generation stood at $263 million, with free cash flow of $234 million representing 37% of sales.
President & CEO Dr. Udit Batra commented on the results, stating, "Our first quarter revenues were at the high end of our guidance as our team continues to execute well." He also noted the margin expansion as a reflection of the company's strong operational performance, despite volume and foreign exchange headwinds.
For the full year of 2024, Waters Corporation maintained its guidance, expecting organic constant currency sales growth to be between -0.5% and +1.5%. The company anticipates full-year 2024 adjusted EPS to be in the range of $11.75 to $12.05, which includes an estimated 2% headwind due to unfavorable foreign exchange. This guidance range sits on either side of the analyst consensus of $11.89, with the midpoint slightly below the consensus.
The first quarter saw varying performance across markets and regions. Sales to the pharmaceutical market decreased by 3%, industrial market sales dropped by 7%, and academic and government market sales plunged by 25%. Geographically, sales in Asia decreased by 18%, while sales in the Americas and Europe decreased by 2% and increased by 2%, respectively.
Looking ahead to the second quarter of 2024, the company expects organic constant currency sales growth to be in the range of -6.0% to -4.0%, with adjusted EPS projected to be between $2.50 and $2.60, factoring in a 4% headwind from foreign exchange.
Waters Corporation, a global leader in analytical instruments and software, continues to focus on innovation and growth areas, positioning itself in attractive end-markets.
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