Waters Corp. (NYSE: WAT) reported Q2 EPS of $1.95, $0.03 better than the analyst estimate of $1.92. Revenue for the quarter came in at $596 million versus the consensus estimate of $597.96 million.

Commenting on the Company’s performance, Chris O’Connell, Chairman and Chief Executive Officer, said, “We are pleased that we saw sequential improvement in our second quarter results, highlighted by strong growth in China, our TA product line, and our recurring revenues. In addition, we delivered meaningful operating leverage, which enabled us to achieve double-digit earnings per share growth. Our second quarter results give us confidence in the ongoing growth trajectory of our business.”

• Sales of $596 million grew 7% as reported and 5% in constant currency
• Growth across all end markets with strong TA performance
• Strong growth from China, partially offset by softness in the U.S.
• GAAP EPS increased 21% to $1.98; non-GAAP EPS increased 11% to $1.95

Third Quarter and Fiscal Year 2018 Financial Outlook

Waters Corporation expects third quarter 2018 constant currency sales growth to be in a range of 4% to 6%, and, as of today, currency translation is expected to decrease third quarter sales growth by approximately 1% to 2%. The Company also expects third quarter 2018non-GAAP earnings per fully diluted share to be in the range of $1.85 to $1.95. Please refer to the table below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the third quarter.

The Company maintains its full-year 2018 guidance for constant currency sales growth in the range of 4% to 6%. As of today, currency translation is expected to increase 2018 sales growth by less than 1%. The Company is revising its guidance for full-year 2018 non-GAAP earnings per fully diluted share to the range of $8.05 to $8.20, from the prior guidance range of $8.10 to $8.30. Please refer to the table below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the full year.

GUIDANCE:

Waters Corp. sees FY2018 EPS of $8.05-$8.20, versus the consensus of $8.18.

For earnings history and earnings-related data on Waters Corp. (WAT) click here.