NEW YORK – Agilent Technologies reported after the close of the market on Tuesday that its fiscal second quarter revenues rose 23 percent year over year, while its core revenues, which exclude the impact of currency and acquisitions and divestitures over the last 12 months, grew 19 percent in Q2.
For the three months ended April 30, Agilent said its revenues rose to $1.53 billion from $1.24 billion in the year-ago period and beat the analysts' average estimate of $1.40 billion.
Revenues for the diagnostics and genomics group rose 20 percent to $315 million from $263 million in the year-ago quarter. The life sciences and applied markets group saw revenues grow 28 percent to $674 million from $526 million. The Agilent CrossLab group grew revenues 19 percent year over year to $536 million from $449 million.
On a conference call with investors following the release of its earnings, Agilent CFO Bob McMahon said that the firm's pharma business grew 29 percent. Agilent's biopharma business, which represents over 35 percent of the pharma business, grew roughly 40 percent.
Mike McMullen, Agilent president and CEO, noted that on a geographical basis, the Americas led the way with revenues up 27 percent. Europe revenues rose 16 percent, and China revenues grew 13 percent.
Among the highlights during Q2, Agilent completed its acquisition of Resolution Biosciences.
Sam Raha, president of Agilent's diagnostics and genomics group, said on the call that the firm will continue to use Resolution Bio's platform for therapy selection. However, he pointed out that Agilent may explore other uses such as minimal residual disease monitoring in the future.
"The primary business today that we have in Resolution Bio is related to pharma services, very much akin to what we do in our traditional [companion diagnostic] business here with Agilent," Raha said. "It's working with pharma to better understand biomarkers and then to develop companion diagnostics."
For the recently completed quarter, Agilent's net income rose to $216 million, or $.70 per share, from a net income of $101 million, or $.32, in Q2 2020. The firm reported adjusted EPS of $.97, beating the analysts' estimate of $.83.
Agilent's Q2 R&D spending for the quarter fell about 45 percent to $109 million from $197 million, while its SG&A spending rose 17 percent to $420 million from $358 million.
Agilent ended the quarter with $1.38 billion in cash and cash equivalents.
"Our very strong growth is broad-based across all end-markets, geographies and business groups," McMullen said in a statement, adding that with the strong Q2 results coupled with expected continued momentum, the firm is raising its full-year revenue and earnings guidance.
The firm now expects full-year 2021 revenues of $6.15 billion to $6.21 billion with EPS of $4.09 to $4.14. In February during its fiscal Q1 earnings announcement, Agilent said it expected between $5.83 billion and $5.90 billion in revenues and adjusted EPS of $3.80 to $3.90 for fiscal 2021.
For the third quarter, Agilent expects revenues of $1.51 billion to $1.54 billion, and adjusted EPS of $.97 to $.99. The consensus Wall Street estimates are for Q3 revenues of $1.42 billion and EPS of $.91.
Agilent's shares were up roughly 3 percent at $136.86 in Wednesday morning trading on the New York Stock Exchange.