NEW YORK – Agilent Technologies reported after the close of the market on Tuesday that its first quarter revenues rose 14 percent year over year.
For the three months ended Jan. 31, Agilent said its revenues rose to $1.55 billion from $1.36 billion, beating analysts' average estimate of $1.44 billion. The firm said core revenues, which exclude the impact of currency and acquisitions and divestitures over the last 12 months, grew 11 percent in Q1.
Revenues for the diagnostics and genomic group (DGG) rose 18 percent to $294.0 million from $249.0 million in the year-ago quarter. The life sciences and applied markets group (LSAG) saw 13 percent revenue growth to $722.0 million from $638.0 million. The Agilent crosslab group (ACG) grew 13 percent year over year to $532.0 million from $470.0 million.
Agilent's core growth in the quarter exceeded revenue expectations of high single-digit growth provided by Agilent President and CEO Mike McMullen at the JP Morgan Healthcare Conference in January. "Our 'build and buy' strategy is delivering for us and the outlook for the remainder of the year is quite strong," McMullen said in a statement on Tuesday.
In January, Agilent signed a comarketing agreement with Mammoth Biosciences to launch a high-throughput CRISPR-based SARS-CoV-2 diagnostic test using Agilent's Bravo automation workstation and Mammoth's DETECTR BOOST SARS-CoV-2 assay.
Agilent also said today that its board of directors has approved a new share repurchase program authorizing the repurchase of up to $2 billion of common stock. The program will begin Feb. 18 and replaces the firm's previous program.
In December, Agilent obtained clearance from Japan's Ministry of Health, Labour, and Welfare for its GentiSure Dx Postnatal Assay. The firm also launched its Biomarker Pathologist training program, which will help pathologists accurately and confidently score biomarkers for identifying accurate treatments for patients.
In Q1, Agilent's net income rose to $288.0 million, or $.93 per share, from a net income of $197.0 million, or $.63, in Q1 2020. The firm reported adjusted Q1 EPS of $1.06, beating analysts' estimate of $.89.
Agilent's Q1 R&D spending narrowed to $103.0 million from $104.0 million, while its SG&A spending rose about 1 percent to $407.0 million from $404.0 million.
For the second quarter, Agilent expects revenues of $1.37 billion to $1.39 billion, and adjusted EPS of $.78 to $.80. Analysts are expecting Q2 revenues of $1.36 billion and EPS of $.83.
For fiscal year 2021, the company is raising its revenue guidance of $5.83 billion to $5.90 billion and adjusted EPS of $3.80 to $3.90. Analysts are expecting revenues of $5.75 billion and EPS of $3.71 for the year.
Agilent's shares were up nearly 5 percent at $133.40 in Wednesday morning trading on the New York Stock Exchange.