Agilent Technologies Q3 Profit Down, But Tops View - Update

(RTTNews) - Scientific instruments maker Agilent Technologies Inc. (A), Thursday reported a drop in profit for the third quarter, as increased one-time charges offset a growth in revenues. Nonetheless, both earnings and revenues for the quarter came in ahead of Wall Street estimates.

Looking forward, Agilent Technologies, which plans to split into two companies later this year, detailed a weak earnings outlook for the fourth quarter and tightened its full-year forecast.

Santa Clara, California-based Agilent Technologies' third-quarter profit dropped to $147 million or $0.43 per share from $168 million or $0.49 per share last year.

During the third quarter, Agilent incurred pre-separation costs, intangible amortization, a net loss on extinguishment of debt and a tax benefit.

Excluding special items, adjusted earnings improved to $0.78 per share from $0.68 per share last year. On average, 12 analysts polled by Thomson Reuters expected earnings of $0.74 per share for the quarter. Analysts' estimates typically exclude special items.

Agilent revenues for the third quarter rose 7 percent to $1.77 billion from $1.65 billion last year. Twelve analysts had a consensus revenue estimate of of $1.75 billion for the quarter.

"Agilent generated strong revenue and earnings this quarter, exceeding the high-end of our forecasted guidance. We're seeing continued improvement in our markets and good order growth across our businesses," CEO Bill Sullivan said.

Third-quarter revenues of Electronic Measurement, now Keysight, rose 8 percent year-over-year, while Life Sciences and Diagnostic, and Applied Chemical Markets, the new Agilent, grew 6 percent, led by strength in environmental, forensics, pharma and clinical/diagnostics.

Last year, Agilent announced it will separate into two publicly traded companies to spur growth. One firm will focus on life sciences, diagnostics and applied markets and will retain Agilent name. The other company will comprise Agilent's electronic measurement products, and will be called Keysight Technologies. The spin-off is expected to occur in early November. Keysight Technologies common stock is expected to be listed on the NYSE, with the ticker symbol "KEYS."

Looking forward to the fourth quarter, the company has expects adjusted earnings of $0.87 to $0.91 per share with revenues between $1.81 billion and $1.85 billion. Analysts currently expect earnings of $0.94 per share on revenues of $1.83 billion for the quarter.

For the fiscal year 2014, Agilent now expects adjusted earnings of $3.04 to $3.08 per share with revenues of $6.99 billion to $7.03 billion. Analysts currently expect full-year earnings of $3.07 per share on revenues of $6.99 billion.

Previously, the company expected adjusted earnings of $2.96 to $3.16 per share with revenues of $6.90 billion to $7.10 billion.

A closed Thursday's trading at $55.62, up $0.84 or 1.53%, on the NYSE. The stock dropped, however, dropped $0.02 or 0.04%, in the after-hours trade.