By Josh Beckerman
Testing-equipment company Agilent Technologies Inc. said
earnings from continuing operations fell 16% in the January
quarter.
The company said the strength of its core analytical business
offset "currency headwinds," and challenges at its diagnostics and
genomics segment, which had regulatory expenses and manufacturing
issues that were resolved late in the quarter.
For the year ending in October, Agilent now expects earnings
excluding items of $1.67 to $1.73 a share on revenue of $4.06
billion to $4.12 billion. It previously projected a profit of $1.68
to $1.78 with revenue of $4.12 billion to $4.18 billion.
"Foreign currency movements have a very negative impact on
Agilent's revenues and profits, but the company has taken actions
on all fronts to mitigate the effects." Many U.S. companies have
been hit by currency issues recently as the strong dollar hurts
overseas revenue.
For the current quarter, Agilent expects earnings excluding
items of 37 cents to 41 cents a share on revenue of $985 million to
$1.05 billion. Analysts polled by Thomson Reuters expect earnings
to 39 cents a share on revenue of $998 million.
Shares rose 13 cents to $40.65 in after-hours trading.
Agilent, which was spun off from Hewlett-Packard Co. in 1999,
split off its electronic-measurement business as a separate public
company, Keysight Technologies Inc., last year. Agilent retained
its life sciences, diagnostic equipment and applied chemical
operations.
The company's Dako division has announced partnerships this year
with Cell Signaling Technology, a provider of antibodies, and drug
company Ono Pharmaceutical Co.
The January quarter is the first period using the three
reporting segments announced in November: Life Sciences and Applied
Markets, Diagnostics and Genomics, and Agilent CrossLab Group. The
change is intended to help customers by "combining our businesses
around market needs, rather than technologies."
For the quarter ended Jan. 31, the company earned $72 million,
or 21 cents a share, compared with $195 million, or 58 cents a
share, a year earlier. Revenue was up 2% to $1.03 billion.
Earnings from continuing operations excluding items were 41
cents a share, flat with a year earlier.
Agilent had projected a profit of 39 cents to 43 cents a share
and revenue of $1.02 billion to $1.04 billion.
Agilent said in September that Chief Executive Bill Sullivan
would step down in March and remain an adviser before retiring in
October. The company said Mike McMullen, who was the president of
its Chemical Analysis Group, would become CEO in March.
Write to Josh Beckerman at josh.beckerman@wsj.com
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