Agilent Technologies Q2 Profit Down - Update

(RTTNews) - Scientific instruments maker Agilent Technologies Inc. (A), Wednesday reported a drop in profit for the second quarter, due mainly to some flat revenues. Earnings for the quarter fell short of Wall Street estimates by a penny, while revenues were in line with expectations.

Moving ahead, Agilent Technologies, which plans to split into two companies later this year, detailed a weak outlook for the third quarter and maintained its full-year forecast.

Santa Clara, California-based Agilent Technologies' second-quarter profit dropped to $150 million or $0.45 per share from $166 million or $0.48 per share last year.

Adjusted earnings dropped to $244 million or $0.72 per share from $269 million or $0.77 per share last year. On average, 12 analysts polled by Thomson Reuters expected earnings of $0.73 per share for the quarter. Analysts' estimates typically exclude special items.

Agilent's revenues for the second quarter remained relatively flat at $1.731 billion, compared to last year's revenues of $1.732 billion. Eleven analysts had a consensus revenues estimate of $1.73 billion for the quarter.

Segment-wise, Electronic Measurement revenues for the quarter slid 2 percent year-over-year, while Chemical Analysis rose 3 percent, led by food and forensics markets. Life Sciences and Diagnostic revenue inched up 1 percent, on strength in pharma and diagnostics/clinical markets.

Looking forward to the third quarter, Agilent expects adjusted earnings of $0.72 to $0.74 per share with revenues of $1.74 billion and $1.76 billion. Analysts currently expect earnings of $0.79 per share on third-quarter revenues of $1.74 billion.

For the fiscal year 2014, Agilent continues to expect adjusted earnings of $2.96 to $3.16 per share, with revenues of $6.90 billion to $7.10 billion. Analysts currently expect full-year earnings of $3.08 per share on revenues of $6.98 billion.

In September last year, Agilent announced it will separate into two publicly traded companies to spur growth. One firm will focus on life sciences, diagnostics and applied markets and will retain Agilent name. The other company will comprise Agilent's electronic measurement products, and will be called Keysight Technologies. The spin-off is expected to occur early November. Keysight Technologies common stock is expected to be listed on the NYSE, with the ticker symbol "KEYS."

A closed Wednesday's trading at $55.85, down $0.98 or 1.72%, on the NYSE. The stock further dropped $0.35 or 0.63% in the after-hour trade.