What Happened?
Shares of scientific instruments company Waters Corporation (NYSE:WAT) fell 9% in the morning session after the company reported disappointing fourth quarter results: Its revenue and EPS guidance for next quarter fell short of Wall Street's estimates. whole, was underwhelming. The company highlighted headwinds related to foreign exchange, volume, and inflation. Also, the sales outlook suggests growth will trudge along in the mid-single digits, given foreign exchange pressures.
On the other hand, Waters Corporation exceeded analysts' organic revenue and EPS expectations this quarter. Still, the quarter, on the whole, was underwhelming.
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What The Market Is Telling Us
Waters Corporation’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Waters Corporation is up 2.3% since the beginning of the year, but at $376.90 per share, it is still trading 9.7% below its 52-week high of $417.28 from January 2025. Investors who bought $1,000 worth of Waters Corporation’s shares 5 years ago would now be looking at an investment worth $1,680.
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