Waters Corporation (WAT) shares plummeted 13.84% during Monday's intraday trading session following the company's disappointing first-quarter profit forecast and concerns about its recently acquired business unit.
The lab equipment maker reported better-than-expected fourth-quarter results but issued guidance for the current quarter that fell significantly short of analyst estimates. Waters expects first-quarter adjusted earnings per share of $2.25 to $2.35, well below the consensus estimate of $2.51.
Investors also expressed concern about the performance of the recently acquired Becton Dickinson biosciences and diagnostic solutions business, which reported an 8.3% year-over-year revenue decline to $766 million, substantially below expectations of $1.3 billion. While Waters completed this transformative $17.5 billion acquisition, the weaker-than-expected performance of the BD unit has raised questions about integration challenges and near-term operational headwinds.