(By Balaseshan) Waters Corp. (NYSE: WAT), an analytical instrument manufacturer, reported a 28.3% jump in quarterly earnings on a tax benefit despite a marginal increase in revenue. Despite revenue missing consensus, adjusted earnings exceeded Street's expectations.
Earnings for the fourth quarter were $175.94 million or $2.00 per share, higher than last year's $137.15 million or $1.51 per share. Adjusted earnings per share (EPS) rose to $1.59 from $1.56.
Net sales marginally increased 0.1% to $521.77 million. In the quarter, constant currency sales growth was approximately 1.5%.
Analysts, on average, polled by Thomson Reuters had expected a profit of $1.58 per share on revenue of $522.23 million for the fourth quarter.
"Demand trends in the fourth quarter were generally consistent with those observed throughout 2012. Our recurring revenues and business in Asia contributed to overall constant currency growth during a challenging period for the company," said Douglas Berthiaume, Chairman, President and Chief Executive Officer.
For the full year 2012, the company posted net income of $461.44 million or $5.19 per share, up from $432.97 million or $4.69 per share last year. Adjusted EPS rose 2% to $4.93, in line with consensus.
Sales for the year decreased 0.4% to $1.84 billion, in line with Street's expectations. Foreign currency translation reduced sales growth by about 2%.
"For the full year, the combination of a stable pricing environment and prudent cost control allowed us to maintain our operating income level and grow our EPS principally by reducing our share count through share repurchases," said Berthiaume.
WAT closed Friday's regular session up 1.46% at $91.89. The stock has been trading between $74.12 and $94.47 for the past 52 weeks.