Waters Reports Fourth Quarter and Full Year 2016 Financial Results
Asia Pacific and Europe led strong global growth
Waters Corporation reported fourth quarter 2016 sales of $629 million, a 7% increase versus sales of $587 million in the fourth quarter of 2015. Foreign currency translation reduced sales growth by 2% in the quarter. On a GAAP basis, earnings per diluted share (EPS) for the fourth quarter was up 17% to $2.15 compared to $1.83 for the fourth quarter of 2015. On a non-GAAP basis, including the adjustments in the attached reconciliation, EPS increased 13% to $2.21 from $1.96 in the fourth quarter of 2015.
For the full year, sales for the Company were $2,167 million, up 6% compared with sales of $2,042 million in 2015. Foreign currency translation reduced sales growth by 1% in the year. On a GAAP basis, EPS for 2016 was up 13% to $6.41 compared to $5.65 in 2015. On a non-GAAP basis and including adjustments in the attached reconciliation, EPS increased 12% to $6.62 in 2016 as compared to $5.89 in 2015.
Commenting on the Company’s performance, Christopher J. O’Connell, President and Chief Executive Officer said, “I am pleased to report that our fourth quarter featured broad-based sales growth across our major markets, and balance across all product lines. The global Waters team executed well throughout 2016 and delivered strong financial results, while we continued to invest for future growth.”
Unless otherwise noted, sales growth percentages are presented on an as reported basis and are the same as the sales growth percentages presented on a constant currency basis, each of which are detailed in the attached reconciliation of GAAP to non-GAAP sales.
Results from the Company’s markets in the quarter were highlighted by 4% sales growth (6% in constant currency) from the broadly defined pharmaceutical market, 13% sales growth (14% in constant currency) from the industrial market, and 5% sales growth (6% in constant currency) from the governmental and academic market. For the full year, sales to the pharmaceutical market grew 9% (10% in constant currency), sales to the industrial market grew 6%, and sales to the governmental and academic market fell 4% (3% in constant currency).
Geographically, sales during the quarter grew 16% in Asia, 5% in Europe (9% in constant currency), and 1% in the Americas (2% in constant currency). For the full year, sales grew 13% in Asia (12% in constant currency), 4% in Europe (6% in constant currency), and 2% in the Americas (3% in constant currency).
The Company’s recurring revenues, the combination of service and chemistry consumables, posted 7% sales growth (8% in constant currency), while instrument system sales grew 7% (9% in constant currency) in the quarter. For the full year, the Company's recurring revenues grew 8%, while instrument system sales grew by 4% (6% in constant currency).
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