NEW YORK (GenomeWeb) – Agilent Technologies reported after the close of the market on Monday that its fiscal second quarter revenues rose 8 percent.
For the three months ended April 30, the firm reported revenues of $1.10 billion, up from $1.02 billion a year earlier, beating the average Wall Street analyst expectation for revenues of $1.05 billion.
Revenues from the life sciences and applied markets group rose 6 percent to $523.0 million from $495.0 million a year earlier with double-digit growth in the chemical and energy, pharma, and environmental markets. Revenues from the diagnostics and genomics group rose 13 percent to $201.0 million from $178.0 million in Q2 2016, led by pharma and diagnostic and clinical end-markets. Revenues from the company's CrossLab Group rose 9 percent to $378.0 million from $346.0 million year over year, with solid growth in both services and consumables.
"The Agilent team delivered another excellent quarter," Agilent President and CEO Mike McMullen said in a statement. "We continue to deliver on our long-term focus of driving above market growth, expanding operating margins, and deploying capital in a balanced manner. Looking ahead, we are confident in our company's prospects."
Agilent's Q1 net income rose to $164.0 million, or $.50 per share, from $91.0 million, or $.28 per share, a year earlier. On an adjusted basis, the company reported EPS of $.58 per share, solidly beating the average analyst estimate of $.48 per share.
On a conference call with analysts following the release of the earnings, McMullen noted that the company's revenues were some $42 million higher than the high end of its revenue guidance, and that its EPS was $.09 above the high end of its earnings guidance.
He said Agilent saw a stronger-than-expected pickup in the chemical and energy market, and saw broad-based growth across its business with specific strength in gas chromatography, spectroscopy, and consumables sales. McMullen also noted growth in its pharma business that exceeded expectations, with the highest growth being in the biopharma segment. There was strong pharma customer interest in the company's new offerings and across its portfolio, he added, particularly in gas chromatography, mass spectrometry, and spectroscopy.
Growth in the life sciences business was led by chemical, energy, and pharma. Agilent saw strength in its cell analysis platforms, as well as other instruments. McMullen said the pipeline of new products is strong and the company is looking forward to unveiling new products at the upcoming American Society for Mass Spectrometry annual meeting in June.
The one dark spot, McMullen said, was the academic and government market. As academic and government funding remain weak, business in that segment was down 2 percent in the quarter.
Geographically, he said, Agilent saw growth in Europe across all market segments, except academia and government. Business in Asia remains strong, with high single-digit growth in China.
The firm's Q2 R&D costs rose 4 percent to $84.0 million from $81.0 million a year earlier. Its SG&A expenses fell 3 percent to $307.0 million from $318.0 million in Q2 2016.
Agilent ended the quarter with cash and cash equivalents of $2.39 billion.
For the third quarter, the company said it expects revenues in the range of $1.06 billion to $1.08 billion, and adjusted earnings of $.49 to $.51 per share. Analysts are expecting Q3 revenues of $1.08 billion and EPS of $.53. Agilent also noted it expects full-year 2017 revenues of $4.36 billion to $4.38 billion and adjusted earnings of $2.15 to $2.21 per share. Analysts are expecting 2017 revenues of $4.35 billion and EPS of $2.16.
McMullen also noted on the call that Agilent's appetite for M&A deals remains, and that the company is "quite interested in adding new capabilities in fast-growing spaces." He added that there are "lots of interesting assets out there," especially in the private sector.
The company's shares rose more than 6 percent to $59.68 in Tuesday morning trading on the New York Stock Exchange.