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Agilent Shares Tumble on Lowered Guidance, Revenue Miss

EditorLina Guerrero
Published 05/29/2024, 04:22 PM
© Reuters.

SANTA CLARA, Calif. - Agilent Technologies Inc. (NYSE: NYSE:A) reported a second-quarter earnings per share (EPS) of $1.22, marginally surpassing analyst expectations by $0.03. However, the company’s revenue of $1.57 billion fell short of the consensus estimate of $1.58 billion and marked an 8.4% decline from the second quarter of 2023. Following the release, Agilent's stock plummeted by 15%, signaling investor concerns over the company's revised full-year outlook and revenue shortfall.

For the third quarter of 2024, Agilent anticipates EPS in the range of $1.25 to $1.28, which is significantly below the analyst consensus of $1.45. The company also forecasts third-quarter revenue to be between $1.535 billion and $1.575 billion, falling short of the expected $1.72 billion. Furthermore, Agilent has adjusted its full-year 2024 EPS guidance to $5.15-$5.25, compared to the analyst consensus of $5.50, and expects revenue to reach $6.42-6.5 billion, which is below the anticipated $6.77 billion.

Agilent President and CEO, Padraig McDonnell, commented on the results, stating, “In Q2, we delivered on our expectations and showed the resiliency of our diversified business. While we see the market improving, it is improving at a slower pace than anticipated.” McDonnell added, “We are taking decisive action to streamline our cost structure and capture incremental opportunities in the markets as they recover. I’m confident about the future and extremely excited about the opportunities that lie ahead for Agilent.”

The company also announced plans to repurchase $0.75 billion of its common stock by the end of the fiscal year and has received authorization for a new $2.0 billion share repurchase program.

Despite the earnings beat, the significant decline in the stock price reflects the market's reaction to the company's lower-than-expected guidance and revenue miss. Agilent's Life Sciences and Applied Markets Group reported a 14% decrease in revenue compared to the same quarter last year, while the Diagnostics and Genomics Group saw a 9% decline. On a positive note, the Agilent CrossLab Group experienced a 4% increase in revenue year-over-year.

Agilent's revised full-year outlook indicates a slower market recovery than previously anticipated. As the company navigates these challenges, it aims to leverage its diversified business model and strategic cost reductions to position itself for future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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