Agilent Technologies (NYSE:A) Inc stock tumbled after it cut its outlook for its fiscal year 2023 while noting that demand from biotech companies had dried up in the difficult environment.
“We expect this constrained capital environment to remain in place throughout the course of our fiscal year. Because of these factors, we are taking a more cautious approach to the second half and have revised our forecast downward,” Agilent CEO Michael R McMullen said on a post-earnings analyst call.
“We now expect core revenue growth to be in the range of 3% to 4.5%, with EPS growing faster than revenue at 7% to 8%.”
The Santa Clara, California-based lab-equipment maker said it expects fiscal third-quarter non-GAAP earnings of $1.36 to $1.38 per share on revenue of $1.640 billion to $1.675 billion. The consensus earnings estimate is $1.43 per share on revenue of $1.77 billion for the quarter ending July 31, 2023.
In addition, Agilent said it expects fiscal 2023 non-GAAP earnings of $5.60 to $5.65 per share on revenue of $6.93 billion to $7.03 billion. The company's previous guidance was earnings of $5.65 to $5.70 per share on revenue of $7.03 billion to $7.10 billion. Wall Street’s estimates were $5.69 per share on revenue of $7.09 billion for the year ending October 31, 2023.
Investors sent shares down 10.7% to $117.91 in afternoon trading.
KeyBanc downgraded Agilent to Sector Weight from Overweight, saying the rating change is due to a recovery needed in margins and “a lack of revenue catalysts in the back half of the year.”
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