Published on 31 May 2024 on Zacks via Yahoo Finance
Agilent (A) Q2 Earnings Beat Estimates, Revenues Fall Y/Y
Agilent Technologies A delivered second-quarter fiscal 2024 earnings of $1.22 per share, which beat the Zacks Consensus Estimate by 2.5%. However, the bottom line decreased 4% from the year-ago quarter.Revenues of $1.57 billion lagged the Zacks Consensus Estimate by 0.5%. The top line declined 8.4% on a reported basis and 7.4% on a core basis from the year-ago quarter.The decline was attributed to broad-based weakness across all end markets, especially in the Pharma, Food, and Academic and Government markets.Weak momentum in China was another concern.
Segmental Top-Line Details
Agilent has three reporting segments — Life Sciences & Applied Markets Group (“LSAG”), Agilent Cross Lab Group (“ACG”), and Diagnostics and Genomics Group (“DGG”).LSAG: The segment accounted for $754 million or 48% of the company’s total revenues, down 14% on a reported basis and 13% on a core basis from the prior-year quarter. This was due to macroeconomic uncertainties, and sluggish capital equipment spending by customers. The reported figure missed the Zacks Consensus Estimate of $849 million.Nevertheless, the company witnessed growth in pre-owned instruments and consumables.ACG: Revenues from the segment were $402 million, accounting for 25% of the total revenues. The figure surpassed the consensus mark of $385 million. The top line improved 4% from the prior-year quarter on a reported basis and rose 5% on a core basis. Growing lab demand, along with solid momentum in the CrossLab team, contributed well. Strong growth in contract revenues was a positive.DGG: Revenues decreased 9% year over year on a reported and 8% on a core basis to $417 million, accounting for the remaining 27% of the total revenues. The figure beat the consensus mark of $332 million. Sluggishness in NGS Chemistries, cell analysis and NASD was concerning.Nevertheless, strength in the pathology business, owing to solid clinical demand for Agilent’s Cancer Dx platform, was a positive.