NEW YORK – Agilent Technologies reported after the close of the market on Tuesday that its fiscal first quarter revenues rose 6 percent year over year.
For the three months ended Jan. 31, the firm said revenues rose to $1.36 billion from $1.28 billion a year ago, beating analysts' average estimate of $1.35 billion. The company said core revenues grew 2 percent in Q1.
Revenues for the diagnostics and genomic group (DGG) rose 6 percent to $249.0 million from $235.0 million in the year-ago quarter. The life sciences and applied markets group (LSAG) saw 5 percent revenue growth to $638.0 million from $607.0 million. The Agilent crosslab group (ACG) grew 6 percent year over year to $470.0 million from $442.0 million.
"Our revenues were above expectations with growth across all regions and markets, and earnings per share at the top end of our guidance" Agilent President and CEO Mike McMullen said in a statement. "Our first-quarter results provide clear evidence of our growth strategy."
On a conference call with analysts following the release of earnings, McMullen noted that "the extensive lunar holiday affected our customers' ability to transact and accept shipments during the last days of the quarter [which] reduced our reported revenue by about $10 million for the quarter, mainly in LSAG." However he highlighted that the firm has since "recognized the bulk of this revenue in Q2."
McMullen also explained that LSAG's core revenues were down 2 percent "against a tough compare and inclusive of the unexpected impact of the coronavirus." With the exception of China however, he noted that all of LSAG's regions and end markets are performing in line with expectations.
In Q1, Agilent's net income fell to $197.0 million, or $.63 per share, from a net income of $504.0 million, or $1.57 per share, in Q1 2019. The firm reported adjusted Q1 EPS of $.81, in line with analysts' estimate.
Agilent's Q1 R&D expenses rose 2 percent to $104.0 million from $102.0 million, while its SG&A spending swelled 14 percent to $404.0 million from $355.0 million.
Agilent ended the quarter with $1.23 billion in cash and cash equivalents.
For the second quarter, Agilent expects revenues of $1.28 billion to $1.32 billion, and adjusted EPS of $.72 to $.76. Analysts are expecting Q2 revenues of $1.34 billion and EPS of $.79.
For fiscal year 2020, the company is maintaining revenue guidance of $5.5 billion to $5.55 billion and adjusted EPS of $3.38 to $3.43. Analysts are expecting revenues of $5.86 billion and EPS of $3.80 for the year.
Agilent's share fell 1 percent to $84.79 in Wednesday morning trading on the New York Stock Exchange.