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Waters (WAT) Launches Alliance iS, Expands HPLC Offerings

Waters WAT launched an advanced High Performance Liquid Chromatography (HPLC) system called Alliance iS in a bid to strengthen its Waters operating segment’s offerings.

Notably, the new system helps reduce common errors by up to 40%, manages operational risk, mitigates disruptions and increases overall productivity.

The system is designed to bring intuitive simplicity with visual prompts and alerts via a touchscreen interface to routine measurements for the QC laboratory.

The system also enables real-time monitoring of the Alliance iS HPCL system and other chromatography instruments by integrating with waters_connect System Monitoring software.

We believe that the introduction of Alliance iS HPLC system is expected to drive the company’s liquid chromatography instruments business. This, in turn, will likely aid the performance of its Waters operating segment.

In fourth-quarter 2022, the segment reported sales of $754.75 million (87.9% of net sales), which increased 2% 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 HPLC market.

Per a report from Mordor Intelligence, the global HPLC market is expected to see a CAGR of 4.8% between 2022 and 2027.

According to a report from Grand View Research, the HPLC market is anticipated to witness a CAGR of 5.9% between 2022 and 2030.

A report from Market Data Forecast indicates that the global HPLC market is likely to reach $5.02 billion by 2027, seeing a CAGR of 5.7% between 2022 and 2027.

We believe that Waters’ solid prospects in this promising market will likely 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 4.7% in the past year compared with the industry’s and the sector’s declines of 4.3% and 14.1%, respectively.

Expanding Portfolio

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

Apart from the latest launch, Waters recently introduced Battery Cycler Microcalorimeter solution, which helps collect six times more data and accelerate real-world testing from months to weeks.

The company also 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.

Additionally, Waters entered a definitive agreement to acquire Wyatt Technology. With Wyatt, WAT’s 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 driving its customer momentum, which, in turn, will benefit its financial performance.

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.

Moreover, 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.

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. While Arista Networks and Salesforce sport a Zacks Rank #1 (Strong Buy), 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 23.6% in the past year. The long-term earnings growth rate for ANET is projected at 14.17%.

Salesforce shares have lost 13.5% in the past year. CRM’s long-term earnings growth rate is projected at 16.75%.

Analog Devices shares have gained 14.3% in the past year. The long-term earnings growth rate for ADI is projected at 12.25%.

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