Lab equipment maker Waters Corp raised its annual profit forecast after beating third-quarter profit estimates on improved demand from biotech clients. Shares surged nearly 10% in early trading. The company now expects annual adjusted profit per share between $13.05 to $13.15, up from $12.95 to $13.05. CFO Amol Chaubal mentioned the impact of tariffs on their business.

Waters Corp, based in Milford, Massachusetts, supplies lab equipment worldwide, with a focus on biopharma clients. The company is well-positioned to manage the impact of tariffs due to global uncertainty. Waters recently acquired a bioscience and diagnostics unit from Becton Dickinson, expanding its reach in clinical applications. CEO Udit Batra anticipates high-single-digit growth in the fourth quarter.

The company has adjusted its forecast for full-year constant currency sales growth to 6.7% to 7.3%. In the third quarter, Waters reported adjusted profit per share of $3.4, exceeding analysts’ estimates. Quarterly revenue rose by 8% to $800 million, surpassing estimates. For the fourth quarter, the company expects adjusted profit per share between $4.45 to $4.55. Analysts expect a positive reaction from investors.

Read more at Yahoo Finance: Waters Corp raises annual profit forecast on stronger lab equipment demand