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$WAT 2Q15 Q&A: Willoughby of Cleveland had another question about FY15 assumption of EPS impact from FX. Gene answered that looking at YoverY comparison, had about $0.13 impact from FX in 2Q15 and about $0.21 for 1H15. Guidance assumes another $0.13 impact in 3Q15 and something closer to 1Q15 impact in 4Q15.
Waters' fourth quarter sales rose 9% to $687.3MM backed by strong performance from its pharma and government/academic markets. $WAT reported a loss of $4.44 per share, which includes a $550MM charge related to tax reforms. On a non-GAAP basis, EPS increased 14% to $2.51. Recurring revenues grew 12%, while instruments reported 7% sales growth.
Andrew Alliance and $WAT signed an agreement that will bring drug development scientists an easy-to-use, semi-automated sample preparation approach for released N-glycan profiling and analysis by LC and LC-MS. $WAT will combine its existing Glycoworks RapiFluor-MS (RFMS) N-Glycan Kits with an Andrew pipetting robot.
RedShift BioAnalytics, Inc. announced the closing of a $11MM Series C Preferred Stock financing, co-led by Technology Venture Partners and $WAT. The Series C financing allows RedShift to accelerate the commercialization of its biotechnology instrument platform in 2017. RedShift also hired Jeffrey Zonderman as Chief Commercial Officer.
$WAT reported a rise in 1Q17 earnings driven by strong 8% sales growth from pharmaceutical market and 5% sales growth from the industrial market. Net income rose to $105.56MM or $1.31 per share from $94.05MM or $1.15 per share last year. Sales grew to $497.97MM from $475.25MM. Adjusted EPS increased to $1.46 from $1.26.
Analytical systems and software maker $WAT posted a 15.4% growth in its 4Q16 earnings. The company's net income increased to $174.3MM from $151MM during 4Q15. Diluted EPS rose 17% to $2.15 from $1.83 during 4Q15. Net sales increased 7% YoverY to $629MM from $587MM during the prior year period. Excluding items, $WAT earned $2.21 per share.
For 4Q16, $WAT expects constant currency sales growth of approx. 5%. GM is expected to be around 60%. Net interest expense is expected to be about $7MM and operating tax rate is expected to be 14%. Adjusted diluted EPS is expected to be $2.08-2.18. For 2016, $WAT expects reported sales growth of about 6% and adjusted diluted EPS of $6.48-6.58.
$WAT saw sales growth of 4% in Waters Instruments in 3Q16. In the TA Instruments business, revenues were up 1%, with flat sales in instrument systems and 6% growth in service revenues. In Japan, sales from the Waters portfolio declined modestly at constant currency. The performance of the TA business in Japan was flat.
$WAT said the global industrial sector, which includes sales to the material characterization, food, environmental and fine chemicals market, grew 1% in 3Q16. Global weakness from the chemical industry contributed to slower growth in the TA Instruments and Waters product lines. In food safety and food quality applications, sales grew 7%.
In 3Q16, $WAT saw sales growth of 16% in Asia, with strong demand from China. Sales in Europe fell by 3%, with stronger Western European results, offset by weaker demand from Eastern Europe. Sales in the US decreased by 1%, with pharmaceutical sector growth offset by weaker governmental and academic demand.
In 3Q16, $WAT posted a 13% sales growth from the bio/pharmaceutical market and 2% sales growth from the industrial market, offset by a 15% decline in sales within the governmental and academic markets. Recurring revenues, the combination of service and chemistry consumables, posted 8% sales growth, while instrument system sales grew approx. 3%.
Analytical instruments manufacturer $WAT reported an increase in 3Q16 earnings helped by higher sales. Net income was $124.8MM or $1.53 per share in 3Q16, an increase of 9% compared to 3Q15. Total sales grew 5% to $527MM versus last year.
$WAT said that on the product front, water sales were up 8%, while TA sales were up 10%. Geographically, US sales were up 5% in 2Q16, Europe was up 12%, Japan up 3% and sales in Asia outside of Japan was up 10%. $WAT's cash and short term investment totaled $2.6Bil and debt was about $1.8Bil, bringing the company to a net cash position of $843MM.
$WAT, which competes with $PKI and $TMO, said the company's pharmaceutical market led the way with 12% growth in 2Q16. The company saw good growth in its core small molecule QA/QC as well as in large molecule R&D oriented applications. On product line dynamics, instrument sales grew 7% with positive demand for core LC and bench top LC-MS platforms.