Waters Corporation WAT is scheduled to report second-quarter 2020 results on Jul 28.

The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.50 per share, suggesting a decline of 29.9% from the year-ago quarter.

The estimated figure has been revised upward by 2% over the past seven days.

Notably, the company has beat estimates twice in the trailing four quarters, while missing once and matching the other. It has a trailing four-quarter negative earnings surprise of 2.9%, on average.

Factors to Note

Waters’ new product introductions are likely to have contributed to the second-quarter performance.

BioAccord, which is the company’s robust liquid chromatography–mass spectrometry solution, might have benefited the Waters segment’s performance in the to-be-reported quarter.

Further, products like Cyclic IMS and SYNAPT XS may have contributed to the second-quarter performance. Moreover, the two new well-performing tandem quad mass spectrometers are likely to get reflected in the to-be-reported quarter’s results.

Moreover, Waters’ Discovery X3 Scanning Calorimeter, Discovery Hybrid Rheometers, TAM IV, Micro XL isothermal and Microcalorimeter are expected to have aided its second-quarter performance in the thermal analysis market.

Moreover, the company’s robust technology portfolio is likely to have aided its presence in the liquid chromatography market in the quarter to be reported.

Additionally, the company’s strong investments in liquid chromatography instruments, mass spectrometers and chemistries may have contributed to the company’s performance in the large molecule market during the to-be-reported quarter.

Further, the company’s large molecule applications might have witnessed strong adoption rate, which is likely to get reflected in the second-quarter results.

Also, recovery phase in China, and other parts of Europe and Asia during the quarter to be reported is expected to have benefited the company.

However, rapidly spreading coronavirus is expected to have dampened the capital purchasing by customers across the key market during the second quarter. This is expected to have remained a major headwind.

What Our Model Says

Our proven model conclusively predicts an earnings beat for Waters this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Waters has an Earnings ESP of +5.64% and a Zacks Rank #3.

Other Stocks to Consider

Here are some other stocks you may consider, as our proven model shows that thesetoo have the right combination of elements to post an earnings beat this quarter.

JD.com, Inc. JD has an Earnings ESP of +13.79% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Wayfair, Inc. W has an Earnings ESP of +43.47% and a Zacks Rank of 2.

Etsy, Inc. ETSY has an Earnings ESP of +10.98% and a Zacks Rank #2.

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