Waters 2Q profit drops 9 pct, order slowdown hurts
Second quarter earnings for Waters Corp. dropped about 9 percent as the maker of products used in drug discovery and development said an unexpected order slowdown contributed to its disappointing performance.
The Milford company earned $89.3 million, or $1.03 per share, in the three months that ended June 29. That compares with net income of $97.7 million, or $1.09 per share, in last year’s quarter.
A 3 percent reduction in the number of outstanding shares helped boost per-share results for the recent quarter by 7 cents.
Adjusted earnings totaled $1.08 per share, and the company’s revenue slipped slightly to $451.1 million.
Analysts expected, on average, earnings of $1.21 per share on $467.3 million in revenue, according to FactSet.
Waters said foreign exchange rates hurt revenue, and an unexpected slowdown in instrument system orders late in the quarter offset recurring revenue growth. The company’s cost of sales also climbed 5 percent to $188.3 million.
‘‘We believe that underlying demand for instrument systems is, in fact, stronger than indicated by our weak sales growth in the quarter, as order delays and a meaningful backlog build combined in late June to negatively affect our sales and earnings,’’ CEO Douglas Berthiaume said in a statement.
Waters Corp. shares fell $6.36, or 6 percent, to $99.05 in morning trading. The stock has traded between $$74.12 and $106 in the past 52 weeks and ended Monday up 21 percent since the start of the year.