Agilent Profit Tops Estimate; Outlook Weak

(RTTNews) - Scientific instruments maker Agilent Technologies Inc. (A) said Monday after the markets closed that its third quarter profit fell 30% from last year, when profit was boosted by results from its electronic measurement business that was spun off as Keysight Technologies Inc. (KEYS).

However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue. At the same time, the company gave a downbeat outlook for the current quarter and once again lowered its full year revenue forecast.

"Agilent delivered excellent results for our shareholders in the third quarter," said Mike McMullen, Agilent president and CEO. "Revenue was at the high end of our guidance, and earnings per share were above our guidance range."

Agilent shares are currently losing 0.64% in after hours trading after closing the day's regular trading session at $38.82, up 17 cents. The shares trade in a 52-week range of $35.62 to $43.59.

For the third quarter ended July 31, 2015, the Santa Clara, California-based company reported net income of $103 million or $0.31 per share, compared to $147 million or $0.43 per share for the year-ago quarter.

Income from continuing operations for the third quarter was $105 million or $0.31 per share, compared to $63 million or $0.19 per share in the prior year quarter.

Excluding items, adjusted income from continuing operations for the latest quarter was $147 million or $0.44 per share.

On average, 15 analysts polled by Thomson Reuters expected the company to earn $0.41 per share for the third quarter. Analysts' estimates typically exclude special items.

Net revenue for the third quarter rose 1% to $1.014 billion from $1.009 billion in the same quarter last year. Fourteen analysts had a consensus revenue estimate of $1.00 billion for the third quarter.

Third quarter revenue from Agilent's Life Sciences and Applied Markets Group grew 1% to $511 million, driven by strong performance in pharma, environmental and forensics markets.

Third quarter revenue from the company's CrossLab Group as well as its Diagnostics and Genomics Group remained flat with last year at $336 million and $167 million, respectively.

Looking forward to the fourth quarter, the company forecasts revenue of $1.03 billion to $1.05 billion and adjusted earnings of $0.45 to $0.49 per share. Analysts currently expect the company to earn $0.50 per share on revenue of $1.06 billion for the fourth quarter.

Agilent lowered its fiscal 2015 revenue outlook to a range of $4.03 billion to $4.05 billion from its prior outlook of of $4.05 billion to $4.11 billion. The company narrowed its full year adjusted earnings outlook to a range of $1.68 to $1.72 per share from its previous range of $1.67 to $1.73 per share.

Analysts currently expect the company to earn $1.70 per share on revenue of $4.06 billion for the fiscal year 2015.