NEW YORK – Agilent Technologies said after the close of the market on Wednesday that its third quarter revenues fell about 6 percent year over year due to challenging market conditions although the firm outperformed its prior revenue guidance and predicts revenue growth in fiscal 2025.
For the three months ended July 31, the Santa Clara, California-based firm reported revenues of $1.58 billion compared to $1.67 billion a year earlier and ahead of analysts' consensus estimate of $1.56 billion. The firm reported that revenues were down 4 percent year over year on a core basis, excluding the impacts of currency fluctuations, acquisitions, and divestitures.
Agilent President and CEO Padraig McDonnell said in a statement that the company saw signs of improvement in a challenging market and has been investing in growth opportunities. On a conference call Agilent CFO Robert McMahon said that the company expects to return to growth in fiscal 2025.
The firm's Diagnostics and Genomics Group revenues fell 9 percent to $385 million compared to $422 million a year ago. The firm reported mid-single digit growth in pathology revenues that partly offset softness in its cell analysis, genomics, and nucleic acid services division businesses.
Life Sciences and Applied Markets Group revenues fell 8 percent year over year to $782 million from $854 million. The firm said that it had strong growth in consumables revenues but experienced ongoing constraints on its instrument business.
Agilent CrossLab Group revenues, however, grew 4 percent to $411 million from $396 million a year ago with mid-single digit growth in all regions outside of China.
The company reported net income for Q3 of $282 million, or $.97 per share, compared to $111 million, or $.38 per share, a year earlier. It also reported non-GAAP EPS of $1.32, which beat analysts' estimate of $1.27.
The company's R&D spending rose 8 percent in Q3 to $127 million compared with $118 million a year ago. Its SG&A spending fell 3 percent to $395 million from $407 million.
The firm expects fourth quarter revenues in the range of $1.64 billion to $1.691 billion and non-GAAP EPS of between $1.38 and $1.42.
Agilent also narrowed its full-year fiscal 2024 revenue guidance. The firm now expects revenues in the range of $6.45 billion to $6.50 billion compared to a previous expectation of revenues in the range of $6.42 billion to $6.50 billion. Revenues for fiscal 2024 are expected to be down in the range of 5.6 percent to 4.9 percent year over year.
Meanwhile, non-GAAP EPS for the year is expected to be in the range of $5.21 and $5.25 per share compared to a previous predicted range of $5.15 to $5.25.
Agilent's share price rose less than one percent, to $140.12, in Thursday morning trading on the New York Stock Exchange.