Agilent Navigates Market Challenges: Q3 Exceeds Expectations As Strategic Investments Pay Off

Agilent Technologies, Inc. A shares are trading higher after the company reported third-quarter results yesterday.

Revenue fell 5.6% Y/Y to $1.58 billion, beating the consensus of $1.56 billion. By segment, the Life Sciences and Applied Markets Group (LSAG) segment reported revenue of $782 million, down 8% Y/Y (-7% Y/Y core), with an operating margin of 28.4%.

The Agilent CrossLab Group (ACG) revenue came in at $411 million, up 4% Y/Y (+5% Y/Y core), with an operating margin of 34.0%.

The Diagnostics and Genomics Group (DGG) revenue stood at $385 million, down 9% Y/Y (-8% Y/Y core), with an operating margin of 18.3%.

As of July 31, cash and cash equivalents stood at $1.78 billion. Adjusted EPS of $1.32 surpassed the street view of $1.26.

Outlook: Agilent forecasts fourth-quarter revenue of $1.641 billion – $1.691 billion (vs. $1.67 billion estimate) and adjusted EPS of $1.38 – $1.42 (vs. street view of $1.44).

For FY24, Agilent revised its revenue outlook to $6.45 billion – $6.5 billion from $6.42 billion – $6.5 billion (vs. $6.46 billion estimate) and adjusted EPS to $5.21 – $5.25 (vs. $5.20 estimate) from $5.15 – $5.25 earlier.

Agilent President and CEO Padraig McDonnell said, “While market conditions continued to be challenged during the quarter, we saw steady signs of improvement as anticipated. We continue to make investments in our most promising growth opportunities.”

“And we are mobilizing the organization to accelerate value creation through strategic transformation initiatives, which will drive margin expansion and growth—and increase our execution capabilities.”

Investors can gain exposure to the stock via ProShares Nanotechnology ETF TINY and VanEck ETF Trust VanEck Morningstar Wide Moat Growth ETF MGRO.

Price Action: A shares are up 1.88% at $142.63 at the last check Thursday.

Image from Shutterstock

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.