MILFORD, Mass.--(BUSINESS WIRE)--Waters Corporation (NYSE: WAT) reported third quarter 2016 sales of $527 million, a 5% increase versus sales of $501 million in the third quarter of 2015. Foreign currency translation did not materially impact sales growth. On a GAAP basis, earnings per diluted share (EPS) for the third quarter were up 9% to $1.53 compared to $1.40 for the third quarter of 2015. On a non-GAAP basis, including the adjustments in the attached reconciliation, EPS increased 11% to $1.57 from $1.42 in the third quarter of 2015. A description and reconciliation of GAAP to non-GAAP EPS is attached and can be found on the Company’s website at http://www.waters.com under the caption “Investors”.
Through the first nine months of 2016, sales for the Company were $1,539 million, up 6% compared with sales of $1,456 million in the first nine months of 2015. Foreign currency translation did not materially impact sales growth. On a GAAP basis, EPS for the first nine months of 2016 were up 12% to $4.26 compared to $3.82 for the comparable period in 2015. On a non-GAAP basis and including adjustments in the attached reconciliation, EPS increased 12% to $4.41 in the first nine months of 2016 as compared to $3.94 in 2015.
Commenting on the Company’s performance, Christopher J. O’Connell, President and Chief Executive Officer said, “Our third quarter sales performance was highlighted by continued strength in our core bio/pharmaceutical business, impressive growth in Asia, particularly China, and ongoing contribution from our recurring revenues. These drivers offset softer demand from our industrial, governmental and academic customers, and combined with disciplined expense management enabled us to deliver strong EPS growth.”
Sales growth percentages are on an as reported basis and are the same as the sales growth percentages on a constant currency basis, unless otherwise noted, and are detailed in the attached reconciliation of GAAP to non-GAAP sales.
Results from the Company’s markets in the quarter were highlighted by 13% sales growth from the broadly defined bio/pharmaceutical market and 2% sales growth (or 1% in constant currency) from the industrial market, offset by a 15% decline in sales within the governmental and academic markets.
Geographically, the Company’s sales growth in Asia was 16% (or 13% in constant currency), with continued strong demand from China. Sales in Europe decreased by 3% (or 1% in constant currency), with stronger Western European results, offset by weaker demand from Eastern Europe. Sales in the U.S. decreased by 1% in the quarter, with pharmaceutical sector growth offset by weaker governmental and academic demand.
The Company’s recurring revenues, the combination of service and chemistry consumables, posted 8% (or 7% in constant currency) sales growth, while instrument system sales grew approximately 3% in the quarter.
As communicated in a prior press release, Waters Corporation will webcast its third quarter 2016 financial results conference call this morning, October 25, 2016 at 8:00 a.m. eastern time. To listen to the call, connect to www.waters.com, choose “Investors” and click on the “Live Webcast”. A replay will be available through November 1, 2016 at midnight eastern time, similarly by webcast and also by phone at 203-369-1050.
About Waters Corporation
Waters Corporation (NYSE: WAT) develops and manufactures advanced analytical science technologies for laboratory-dependent organizations. For more than 50 years, the Company has pioneered a connected portfolio of separations science, laboratory information management, mass spectrometry and thermal analysis systems.
