61.95, -7.26, -10.49%), a supplier of instruments, services, and applications to
laboratories, gave up 7.0% in pre-market, as cautious guidance outweighs a
slim bottom-line beat. The pre-market drop leaves the stock just a point above
this year's low.
The company reported above-consensus second quarter earnings of $0.65 per share on a 9.4% year/year increase in revenue to $1.21 bln, which matched expectations.
However, the company expects business to slow during the second half of the fiscal year. Agilent expects to report third quarter earnings between $0.61 per share and $0.63 per share, which is below market expectations. The company expects that revenue will be between $1.185 bln and $1.205 bln, which is also shy of estimates.
For the full year, Agilent expects earnings between $2.63 per share and $2.67 per share on revenue between $4.85 bln and $4.87 bln. The company's guidance range is below current market expectations.
Returning to second quarter results, revenue in the Life Sciences and Applied Markets Group rose 7.3% to $561 mln. The increase was fueled by demand for mass spectrometry and cell analysis. Segment gross margin declined to 59.5% from 59.9% one year ago, but operating margin increased by 10 basis points to 21.2%.
Diagnostics and Genomics Group revenue grew 9.0% to $219 mln. The segment growth was driven by strength in genomics. Gross margin weakened to 54.9% from 57.6% one year ago while operating margin declined to 20.2% from last year's 24.2%.
Agilent CrossLab Group revenue jumped 12.7% to $426 mln. The increase was fueled by strength in services and consumables. Gross margin improved to 50.2% from 49.7% while operating margin grew to 23.1% from 21.6%.
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