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On February 12, Waters Corp projected first-quarter profits below Wall Street expectations due to the impact of a robust U.S. dollar. Consequently, the company's shares fell approximately 10% in premarket trading.

The lab equipment manufacturer anticipates an adjusted profit ranging from $2.17 to $2.25 per share, which is lower than the analysts' consensus of $2.42 per share, according to data from LSEG.

Waters foresees a 7% decrease in profit in the first quarter and a 4% decline for the entire year due to the stronger dollar.

In addition, the company predicts adjusted profits between $12.70 and $13.00 per share for 2025, aligning with analysts' expectations of $12.85 per share.

Waters generated over half of its revenue in 2024 from Asian and European markets.

The appreciating dollar typically reduces the profits of companies with significant international operations that convert foreign currencies into dollars.

Despite this challenge, Waters exceeded fourth-quarter profit and revenue projections due to strong demand for its products and services utilized in drug development and manufacturing.

The company has been experiencing revenue growth from its substantial presence in the Indian market, along with its unit providing quality assurance and quality control services to pharmaceutical firms, particularly those producing GLP-1 diabetes and weight-loss medications.

In a similar vein, Thermo Fisher Scientific outperformed expectations in fourth-quarter profit and revenue recently, supported by sturdy demand for its analytical instruments.

Waters' quarterly revenue climbed 6% to $872.7 million for the period ending on December 31, surpassing the analysts' forecast of $857.2 million.

Moreover, on an adjusted basis, the company recorded earnings of $4.10 per share, outpacing the analysts' average estimate of $4.03 per share.