Waters forecasts first-quarter profit below Wall Street estimates, shares slide

Feb 9 (Reuters) - Waters WAT.N said on Monday it expects first-quarter profit to fall below Wall Street estimates, sending shares of the lab equipment maker down nearly 12% in premarket trading as investors weighed the outlook and a revenue decline at the Becton Dickinson unit it acquired last year.

The company, however, forecast better-than-expected full-year profit, reflecting contributions from its $17.5 billion buyout of Becton Dickinson's bioscience and diagnostics business, which it bought to broaden its reach in clinical and diagnostic applications.

Separately, Becton posted an 8.3% year-over-year decline in revenue from its life sciences segment, which includes biosciences and diagnostic solutions, for the quarter ended December 31. The business posted sales of $766 million.

"Overall, it looks like the BD revenue came in lighter than expected, so it may be a heavier lift to improve operations in that business... than previously expected," Morningstar analyst Julie Utterback said.

Waters forecast first-quarter profit of $2.25 to $2.35 per share, versus analysts' average estimate of $2.51, according to LSEG data.

For 2026, Waters said it expects 5.3% combined company sales growth at the midpoint, including the benefit from the acquisition.

It projected 2026 adjusted profit of $14.30 to $14.50 per share, above analysts' average estimate of $14.32.

Waters expects full-year organic revenue of $3.35 billion to $3.40 billion, compared with estimates of $3.36 billion, and said the acquired Becton Dickinson business should add about $3 billion to reported 2026 revenue.

The unit brought in sales of $766 million in the quarter, below analysts' estimate of $1.3 billion.

Waters supplies lab equipment and technology globally, with most revenue coming from biopharma customers that use its tools for research and drug development.

The company reported fourth-quarter adjusted profit of $4.53 per share, topping estimates of $4.51, while revenue rose about 7% to $932 million, compared with expectations of $928.1 million.