Waters Jumps After 1Q Profit Rises Past Estimates

MILFORD, Mass. (AP) — Analytical instrument maker Waters Corp. reported a first-quarter profit far ahead of Wall Street expectations Tuesday, as it cut costs and said service revenue and sales of chromatography reagants stayed strong.

Waters shares climbed $5.82, or 15.6 percent, to $43.53 in afternoon trading.

The company said its profit grew 7 percent, to $73.3 million, or 75 cents per share. It earned $68.5 million, or 67 cents per share, in the first quarter of 2008. Revenue fell 10 percent, to $333.1 million from $371.7 million, but Waters trimmed its spending on research and development and selling and administrative costs, and set aside less money for income taxes.

Excluding one-time gains and losses, the company said it earned 74 cents per share in the quarter ended April 4. Unfavorable foreign currency exchanges were responsible for half of the decrease in revenue.

Thomson Reuters says analysts expected a more modest profit of 57 cents per share and revenue of $337.5 million.

Waters said the global economic slump hurt its business, but pointed to solid "recurring revenue," which the company defines as revenue from service on the instrument systems it sells, and sales of chromotography reagents. Chromatography is the analysis of complex mixtures.