UPDATE 2-Waters Q2 earnings beat Street; 2008 outlook bright
(Recasts; adds details from conference call, analysts' comments)
By Jennifer Robin Raj
BANGALORE, July 22 (Reuters) - Drug research instrument maker Waters Corp (WAT.N: Cotización) posted second-quarter earnings that beat market estimates on strong sales in Asia, and raised its 2008 earnings outlook, sending its shares up 10 percent.
The company posted net income of $83.1 million, or 82 cents a share, compared with $59.9 million, or 59 cents a share, a year earlier. Revenue rose 13 percent to $398.8 million.
Waters, which competes with Thermo Fisher Scientific Inc (TMO.N: Cotización) and Applied Biosystems Group ABI.N, earned 76 cents a share, excluding adjustments related to income tax and amortization expenses.
Analysts on average expected earnings of 71 cents a share, before exceptional items, on revenue of $394.7 million, according to Reuters Estimates.
Sales in Asia, excluding Japan, rose 22 percent during the quarter. Japan sales fell 6 percent, hurt by currency fluctuations. Europe sales grew 3 percent while U.S. sales were up 6 percent for the period ended June 28.
The key drivers of growth in the second quarter were strong demand from developing markets in Asia, continued expansion of the company's industrial businesses and sales in its instruments division, Chief Financial Officer John Ornell said on a conference call.
"(Waters) had a pretty good quarter in terms of demand from the drug industry as well as industrial customers. This is a trend we have seen the last few years and it really does not look like that has changed even though the broader economic environment remains challenging," Leerink Swann analyst Issac Ro said. Continuación...