Agilent (A 71.96, +2.26 +3.24%), a company which provides instruments, software, services and solutions to assist the life sciences, diagnostics and applied chemical markets, has given up much of its initial opening gains following the Q1 beat, mixed Q2 guide and better than expected FY18 guidance.
Let’s start with the Q1 print; in the period, Agilent earned $0.66 per share and revenues rose 13.5% compared to last year to $1.21 billion. During Q1, Agilent had an adjustment related to U.S. Tax Reform of $533 million, intangible amortization of $25 million, a pension settlement gain of $5 million, transformation costs of $5 million, acquisition and integration costs of $3 million, and $3 million in other costs. Excluding these items and a tax benefit of $28 million, Agilent reported first-quarter non-GAAP net income of $216 million.
Breaking down the revenue results, Agilent’s Q1 Life Sciences and Applied Markets Group (LSAG) revenue grew 14% year-over-year to $618 million, with broad strength across all major end markets. Q1 revenue out of the CrossLab Group (ACG) segment grew 12% to $408 million. Growth was strong across services and consumables. Lastly, Agilent’s Diagnostics and Genomics Group (DGG) revenue grew 13% to $185 million led by strong demand for pathology products and companion diagnostics services.
Guidance for Q2 was split; Agilent sees worse than expected earnings of $0.61-0.63 per share for Q2 on better than expected revenues between $1.20-1.22 billion. Guidance for FY18 was better, beating market expectations on both fronts; Agilent sees FY18 EPS of $2.62-2.68 (from $2.50-2.56) on revenues between $4.885-4.905 billion (from $4.72-4.74 billion).
Shares of Agilent gave up quite a bit of the opening strength in the moments after the bell; into the print, shares had been taken for a (broader market) ride during the past few weeks, as action dipped to around $65 a week ago, only to close at $69.70 last night into the results. Likely, today’s move is a product of profit taking as shares boast gains of 35% in the past 52-week period.