Waters (WAT) Expands TA Segment Offerings With New Solution

·3-min read

Waters WAT introduced the Battery Cycler Microcalorimeter solution in a bid to strengthen its TA segment’s offerings.

Notably, the new solution is designed to collect six times more data and accelerate real-world testing from months to weeks.

The solution is capable of testing 12 batteries simultaneously for charge-discharge and thermal testing. Moreover, it supports the testing of three types of batteries namely coin, pouch and 18650 cylindrical.

The solution can also detect parasitic heat reactions quickly by integrating TAM IV Isothermal Microcalorimeter and TAM Assistant Software platform into BioLogic VSP-300 potentiostat.

We believe that the introduction of the Battery Cycler Microcalorimeter solution is expected to drive the company’s TA instruments business. This, in turn, will likely aid the performance of its TA operating segment.

In fourth-quarter 2022, the segment reported sales of $103.8 million (12% of net sales), which increased 10% year over year.

Waters Corporation Price and Consensus


Waters Corporation Price and Consensus
Waters Corporation Price and Consensus

Waters Corporation price-consensus-chart | Waters Corporation Quote

Growth Prospects

The latest move of the company positions it well to capitalize on the growth prospects in the battery cycler market.

Per a report from The Insights Partner, the global battery cycler market is expected to see a CAGR of 6.2% between 2022 and 2028.

We believe that Waters’ solid prospects in this promising market will contribute well to its financial performance in the days ahead. This, in turn, will continue helping it win investors’ confidence.

Coming to the price performance, WAT has lost 11.6% in the past year against the industry’s rally of 9.8%.

The Zacks Consensus Estimate for first-quarter 2023 sales is pegged at $695.5 million, indicating growth of 0.7% from the year-ago quarter’s reported quarter.

The consensus mark for earnings is projected at $2.60 per share, indicating a decline of 7.1% from the year-ago quarter’s reported figure of $2.80.

Expanding Portfolio

The latest move is in sync with Waters’ growing efforts toward expanding its product portfolio.

Apart from the latest launch, the company unveiled a Software-as-a-Service application called waters_connect System Monitoring, which is designed for high-volume quality assurance/quality control laboratories, wherein it can reduce the turnaround time of product release samples and facilitate the planning and progress of critical analyses.

WAT also launched Alliance iS, its next-generation intelligent HPLC System, which reduces common errors by up to 40%, manages operational risk, mitigates disruptions and increases overall productivity.

Additionally, Waters entered a definitive agreement to acquire Wyatt Technology for $1.36 billion in cash. With Wyatt, Waters' portfolio will expand and large molecule applications exposure will get a boost.

We believe that the company’s growing efforts toward strengthening its portfolio offerings will continue to drive its customer momentum, which, in turn, will benefit its financial performance.

Zacks Rank & Stocks to Consider

Currently, Waters carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Arista Networks ANET, Salesforce CRM and Analog Devices ADI. Arista Networks and Salesforce sport a Zacks Rank #1 (Strong Buy), and Analog Devices carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks shares have gained 27.4% in the past year. The long-term earnings growth rate for ANET is projected at 14.17%.

Salesforce shares have lost 9.1% in the past year. CRM’s long-term earnings growth rate is projected at 16.75%.

Analog Devices shares have gained 25.4% in the past year. The long-term earnings growth rate for ADI is projected at 12.25%.

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