Waters Corporation reports first quarter 2022 financial results

Waters Corporation today announced its financial results for the first quarter of 2022.

• Sales of $691 million grew 13% as reported and 16% in constant currency
• Transformation on track with strong commercial momentum, operational performance, and innovation
• Instrument sales grew 26% in constant currency, with strong growth across LC, MS and TA product lines
• All end-markets grew, with pharmaceutical and industrial both up high-teens
• Broad-based sales growth across all geographies, led by U.S. which grew 28% and China grew 17% in constant currency
• GAAP EPS of $2.62; non-GAAP EPS of $2.80, a 22% increase from prior year

“Our teams continue to deliver excellent results despite the challenging environment. This was a record first quarter for Waters’ sales, led by instruments which grew 26% in constant currency, while our recurring revenues grew 9% in constant currency, reflecting continued demand across our geographies and end-markets,” said Dr Udit Batra, President and Chief Executive Officer of Waters Corporation. “Our non-GAAP operating income margin expanded by 170 basis points, demonstrating our team’s continued operational excellence and relentless focus on delivering innovative products to our customers.”

Dr Batra continued, “Our portfolio rejuvenation is focused on large and small molecules, with ArcTM HPLC, ACQUITYTM Premier, and MaxPeakTM Premier columns all providing a strong contribution to growth in the quarter. Customer response to the launches of our new mass spec products – SELECT SERIESTM MRT, XevoTM TQ Absolute, and waters_connectTM has been extremely positive as well.”

First quarter 2022
Sales for the quarter were $691 million, an increase of 13% as reported and 16% in constant currency, compared to sales of $609 million for the first quarter of 2021.

On a GAAP basis, operating income margin for the first quarter of 2022 improved to 28.3% compared to 28.1% for the first quarter of 2021. On a non-GAAP basis, operating income margin improved to 30.3% compared to 28.6% for the first quarter of 2021.

On a GAAP basis, diluted earnings per share (EPS) for the first quarter of 2022 increased to $2.62, compared to $2.37 for the first quarter of 2021. On a non-GAAP basis, EPS increased to $2.80, compared to $2.29 for the first quarter of 2021. A description and reconciliation of GAAP to non-GAAP results appear in the tables below and can be found on the Company’s website www.waters.com in the Investor Relations section.

Other highlights
During the first quarter of 2022, sales into the pharmaceutical market increased 15% as reported and 19% in constant currency, sales into the industrial market increased 14% as reported and 17% in constant currency and sales into the academic and government markets were flat as reported and increased 4% in constant currency.

Recurring revenues, which represent the combination of service and precision chemistries, increased 6% as reported and 9% in constant currency, while instrument system sales increased 24% as reported and 26% in constant currency.

Geographically, sales in Asia during the quarter increased 11% as reported and 14% in constant currency, sales in the Americas increased 26% (with U.S. sales growing 28%), and sales in Europe increased 3% as reported and 9% in constant currency. Sales in China increased 18% as reported and 17% in constant currency.

Unless otherwise noted, sales growth and decline percentages are presented on an as-reported basis and are the same as the sales growth and decline percentages presented on a constant currency basis as compared with the same period in the prior year, each of which is detailed in the reconciliation of sales growth rates to constant currency growth rates in the tables below.

Full-year and second quarter 2022 financial guidance
The Company is raising its full-year 2022 guidance, and now expects constant currency sales growth in the range of 7.5% to 9%. Currency translation is expected to decrease full-year sales growth by approximately three percentage points. The Company is also raising its full-year 2022 non-GAAP EPS guidance to the range of $11.90 to $12.10. Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the full-year.

The Company expects second quarter 2022 constant currency sales growth in the range of 6% to 8%. Currency translation is expected to decrease second quarter sales growth by approximately four percentage points. The Company expects second quarter 2022 non-GAAP EPS in the range of $2.55 to $2.65. Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the second quarter.
MB Bureau