Agilent Technologies Inc. (NYSE: A) reported on Tuesday that fiscal second quarter earnings plunged 35% as the bottom line felt the pinch due to eroding margins, restructuring related costs and write-downs; however, non-GAAP earnings topped Street’s estimation.
The Company also announced that as part of its larger restructuring plan it will slash its workforce by 2% or about 450 positions, globally. Agilent is trying to bring down its operating expenses by roughly $50 million in the current year.
Meanwhile, the Company announced its plans to double its shares repurchase program. Agilent said that its board approved additional $500 million worth shares buyback program.
The based Company, in order to counter weakness in the electronic measurement business, has been trying to increase its traction in emerging markets even as it launched several new products. Besides, the Company also acquired Denmark based Company, Dako, a cancer diagnostic equipment maker, late year in $2.2 billion deal. In the recently concluded quarter, Agilent reported that electronic measurement business witnessed a 13% drop in revenue.
For the fiscal second quarter ended April 30, the Company reported a net income of $166 million or 48 cents a share compared to a profit of $255 million or 72 cents a share. Stripping out onetime items, adjusted earnings came at 77 cents a share, a penny down from year-earlier quarter. Revenue slid 0.1% to $1.73 billion. Earlier in February, the Company had projected earnings of 64 cents to 70 cents a share on revenue of $1.74 billion to $1.77 billion even as Wall Street was expecting 67 cents a share.
Operating margin narrowed to 12.3% from 17.3%.
Revenue more than doubled in diagnostic and genomics division, it rose 3% in Chemical analysis unit while it increased 2% in life-sciences business.
For the full-year fiscal, Agilent downwardly revised its guidance. Earnings are expected to be in the range of $2.70 to $2.85 a share down from $2.70 to $3.0 a share while revenue is expected between $6.75 billion and $6.85 billion from $6.9 billion and $7.1 billion.
For the fiscal third quarter, the Company anticipates earnings to be in the range of 60 cent to 64 cents a share on revenue of $1.63 billion to $1.66 billion while analysts’ consensus estimate was for earnings of 73 cents a share on revenue of $1.75 billion.
Shares edged up 0.66% in extended trading hours to $44.26 after gaining 2.16% in regular trading hours.
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