Scientific instruments maker Agilent Technologies Inc. (A) said Tuesday after the markets closed that its second quarter profit fell 35% from last year, as revenue remained flat but costs and expenses rose.
However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations, but its quarterly revenue fell shy of analysts' forecast.
At the same time, the company forecast third quarter revenue and earnings below analysts' current consensus estimates, and lowered its fiscal year 2013 revenue outlook. The company also lowered the top end of its fiscal 2013 earnings outlook range.
Agilent CEO Bill Sullivan said, "We were pleased to have exceeded EPS guidance for the quarter, reflecting our focus on cost control and profitability in the face of the worldwide economic slowdown and the impact of U.S. sequestration. We expect the macroeconomic environment to remain challenging throughout the second half of 2013 and are taking additional actions to strengthen our operating performance."
Agilent also said that its board of directors has increased its existing stock repurchase program by $500 million to $1 billion. The company repurchased 3.3 million shares of its common stock during the second quarter, and about $781 million of stock remains to be repurchased under the increased program. The company expects the program to be completed by the end of calendar year 2013.
Additionally, the company said that it has begun a restructuring program that is expected to reduce its total headcount by about 450 regular employees, representing about 2% of its global workforce. When completed, the restructuring program is expected to reduce its annual operating expenses by about $50 million.
Agilent shares are currently gaining 0.64% in after hours trading after closing the day's regular trading session at $43.97, up 93 cents or 2.16%. The shares trade in a 52.week range of $35.32 to $45.66.
Second quarter revenue from the company's Electronic Measurement segment fell 7% from last year to $760 million, with particular weakness in wireless manufacturing.
Life Sciences revenues for the quarter grew 2% to $405 million, helped by continued strength in pharmaceutical markets.
Second quarter revenue from the company's Chemical Analysis segment rose 3% to $401 million, led by growth in food markets.
Diagnostics and Genomics segment, which includes the Dako acquisition, had second quarter revenue of $166 million, up 124% year-over-year.
Total orders in the second quarter were $1.69 billion, down 8% as compared to $1.84 billion in the second quarter of last year, the company said. For the second quarter ended April 30, 2013, the Santa Clara, California-based company reported net income of $166 million or $0.48 per share, compared to $255 million or $0.72 per share for the year-ago quarter.
Excluding items, adjusted net income for the second quarter was $269 million or $0.77 per share, compared to $275 million or $0.78 per share in the prior year quarter.
On average, 17 analysts polled by Thomson Reuters expected the company to earn $0.67 per share for the second quarter. Analysts' estimates typically exclude special items.
Revenues for the second quarter remained flat with last year at $1.73 billion. Fourteen analysts had a consensus revenue estimate of $1.74 billion for the second quarter.
Looking forward to the third quarter, the company forecast revenues of $1.63 billion to $1.66 billion and adjusted earnings of $0.60 to $0.64 per share. Analysts currently expect the company to earn $0.74 per share on revenue of $1.75 billion for the third quarter.
For the full fiscal year 2013, Agilent now expects revenue of $6.75 billion to $6.85 billion and adjusted earnings of $2.70 to $2.85 per share. Previously, the company expected revenue of $6.9 billion to $7.1 billion and adjusted earnings of $2.70 to $3.00 per share. Analysts currently expect the company to earn $2.88 per share on revenue of $7.00 billion for the fiscal year 2013.
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