SANTA CLARA (dpa-AFX) - Scientific instruments maker Agilent Technologies Inc. (A), Wednesday reported a lower third-quarter profit, hurt mostly by a four percent drop in revenues amid tough market conditions, coupled with higher expenses. Nevertheless, both earnings and revenue for the quarter topped Wall Street estimates.
Agilent provided some soft revenue guidance for the fourth quarter, while lifting the bottom end of its earnings guidance for fiscal 2013 and narrowed its revenue expectations.
Shares of the company gained over 4 percent in after-hours trade on the New York Stock Exchange.
CEO Bill Sullivan believes that despite economic challenges, the company managed to improve efficiency and streamline expenses.
Santa Clara, California-based Agilent reported third-quarter net income of $168 million or $0.49 per share, compared to $243 million or $0.69 per share last year.
Results for the quarter included intangible amortization of $48 million, among other expenses.
Excluding items, adjusted earnings for the quarter were $233 million or $0.68 per share, compared with $278 million or $0.79 per share a year ago.
On average, sixteen analysts polled by Thomson Reuters estimated earnings of $0.62 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the third quarter slid to $1.65 billion from $1.72 billion in the prior year. Thirteen analysts had a consensus revenue estimate of $1.64 billion for the quarter.
Among segments, Electronic Measurement revenue slid 17 percent year-over-year, on weakness in wireless manufacturing. Chemical Analysis revenues edged up 1 percent, led by growth in food and energy markets.
Life Sciences revenues were up 3 percent from last year, on strength in pharmaceutical end-markets. Diagnostics and Genomics revenues surged 54 percent, helped by the acquisition of Dako.
For the fourth quarter, Agilent expects adjusted earnings of $0.75 to $0.77 per share on revenues of $1.7 billion to $1.72 billion. Analysts currently expect earnings of $0.76 per share on revenues of $1.73 billion for the quarter.
For fiscal 2013, the company now expects adjusted earnings of $2.83 to $2.85 per share on revenues of $6.76 billion to $6.78 billion. The company had earlier estimated earnings of $2.70 to $2.85 per share on revenues of $6.75 billion to $6.85 billion. Analysts currently expect earnings of $2.78 per share on revenues of $6.78 billion for 2013.
Shares of Agilent closed Wednesday's regular trade at $46.51, down $0.41 or 0.87%, on a volume of 1.7 million shares. In after hours, the stock gained $1.90 or 4.09%.
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