Milford, Massachusetts-based Waters Corporation (WAT) designs, manufactures, sells, and services high and ultra-performance liquid chromatography, mass spectrometry (MS) technology systems, support products, and more. With a market cap of $19.7 billion, Waters’ operations span various countries in Asia, the Americas, and Europe.

The company is gearing up to announce its Q1 results before the market opens on Tuesday, May 6. Ahead of the event, analysts expect WAT to report an adjusted EPS of $2.22, marginally up from $2.21 reported in the year-ago quarter. On the positive note, WAT has surpassed the Street’s bottom-line estimates in each of the past four quarters.

For the full fiscal 2025, analysts expect WAT to deliver an adjusted EPS of $12.84, marking an 8.3% growth from $11.86 reported in fiscal 2024. While in fiscal 2026, its earnings are expected to surge 10.4% year-over-year to $14.17 per share.

WAT stock prices have gained nearly 6.9% over the past 52 weeks, outpacing the Health Care Select Sector SPDR Fund’s (XLV) 3.9% dip and the S&P 500 Index’s ($SPX) 6% returns during the same time frame.

Despite delivering better-than-expected results, Waters’ stock prices plunged 5.8% after the release of its Q4 results on Feb. 12. The company’s net sales for the quarter increased 6.5% year-over-year to $872.7 million, surpassing the Street’s expectations by 1.8%. Meanwhile, its adjusted EPS increased 13.3% year-over-year to $4.10, exceeding the consensus estimates by nearly 2%.

However, its sales for the full fiscal 2024 remained flat at $2.9 billion, and its adjusted EPS grew less than 1% to $11.86. Waters expects sales and earnings growth to remain tame in the coming quarters as well. In fiscal 2025, the company’s adjusted EPS is expected to range between $12.70 to $13, while its revenues are expected to increase 3.8% as per its guidance midpoint, which failed to impress investors.

The consensus view on WAT stock is cautiously optimistic, with a “Moderate Buy” rating overall. Of the 18 analysts covering the stock, seven recommend “Strong Buy” and 11 advise a “Hold” rating. Its mean price target of $397.06 suggests an 18.6% upside potential from current price levels.