Nov 1 (Reuters) - Waters Corp ( WAT ) raised its annual

profit forecast after beating Wall Street estimates for

third-quarter profit and revenue on Friday, on improved demand

for its products and services used in drug development and

research.

The lab equipment and software maker expects its 2024

adjusted profit to be between $11.67 and $11.87 per share,

compared with its prior forecast of $11.55 to $11.65 per share.

Analysts were expecting $11.60, according to LSEG data.

Waters now expects its annual revenue to decline by 0.2% to

0.8%, versus its previous outlook of a 0.7% to 2.2% decline.

The earnings were driven by new product adoption and

improved consumer spending trends, said CEO Udit Batra.

Lab equipment makers have been witnessing reduced spending

from biotechs since last year, but recent interest-rate cuts

could improve the funding environment for such clients as

borrowing costs might ease.

Milford, Massachusetts-based Waters supplies lab equipment

and technology for scientists across the world, with the

majority of its revenue coming in from biopharma clients who use

its tools for research and drug development.

Larger peer Thermo Fisher Scientific ( TMO ) raised the

lower end of its annual profit forecast last month, betting on

improved demand for its tools and services used in drug

development.

Waters also forecast fourth-quarter adjusted per share

profit at $3.90 to $4.10. Analysts on average expect it to be

$4.09.

Its third-quarter revenue grew 4% to $740.3 million, ahead

of analysts' estimate of $713 million. The company posted an

adjusted profit per share of $2.93, beating estimates of $2.68.