Adjusted EPS was $2.84, beating the consensus of $2.55.

The Milford, Massachusetts-based company states that its gross margin expanded 240 basis points, and its adjusted operating income margin expanded 380 basis points.

Waters saw low single-digit organic constant currency growth outside of China, led by mid-single-digit pharma growth.

During Q3, sales into the pharmaceutical market increased by 4%, as reported, and decreased by 2% in organic constant currency. 

Q3 sales into the industrial market decreased by 6%, as reported, and 8% in organic constant currency. 

Quarterly sales into the academic and government markets increased by 3%, as reported, and decreased by 3% in organic constant currency.

"U.S. and Europe pharma growth was again solid in the quarter and exceeded our expectations. However, China fell below our expectations as weakness moved beyond pharma into the industrial and academic and government segments," said Dr. Udit Batra, President & CEO, of Waters Corporation.

The company now expects full-year 2023 organic constant currency sales to decline in the range of -2% to -1% (prior view: 0.5% to 1.5% growth).

The company expects Q4 adjusted EPS of $3.52-$3.62, versus analyst consensus of $4.29.

The fourth quarter of 2023 reported sales growth is expected in the range of -6% to -3%.

Price Action: WAT shares are trading higher by 1.99% to $257.17 on the last check Tuesday.