Agilent Technologies (NYSE: A) stock surged above 7% after the bell as the company raised its full-year headline numbers. Third quarter results also came in ahead of estimates. The company’s stock is down 20% since March and down 13% since May after the company lowered its full-year guidance due to weak sales from the life sciences division.
Revenue rose 6% to $1.27 billion while adjusted EPS rose 13% to 76 cents, surpassing the street estimates. Last quarter, Agilent had guided revenue of $1.225-1.245 billion and non-GAAP earnings of 71-73 cents per share. On the flip side, the street was anticipating top line of $1.24 billion and non-GAAP EPS of 72 cents.
The company’s segment results mimicked the second quarter trend. Life Sciences and Applied Markets Group sales rose 1% due to continued softness in the food market customers.
Agilent CrossLab Group grew double-digits (10%) due to across the board growth, while Diagnostics and Genomics Group saw 11% growth aided by Nucleic Acid Solutions division and diagnostics and clinical markets.
Last month, Agilent bought BioTek for $1.16 billion and expects to close the deal by fourth quarter. The deal would be contributing 2-4 cents to adjusted EPS from fiscal 2020 period. This acquisition would help Agilent to broaden its portfolio in the cell analysis domain which is witnessing huge demand from the customers.
In 2015, Agilent forayed into the cell analysis segment by acquiring Seahorse Bioscience. To further augment the portfolio, the company bought Luxcel Biosciences and ACEA Biosciences in 2018.
Agilent expects Q4 revenue in the range of $1.31-1.33 billion and non-GAAP earnings of $0.84-0.86 per share. Analysts are projecting top line of $1.34 billion and non-GAAP EPS of 87 cents, which is a tad higher than the firm’s outlook.
For the full-year period, the company has raised its guidance for revenue and earnings. Revenue is now expected at $5.105-5.125 billion and adjusted EPS at $3.07-3.09. Last quarter, Agilent had guided revenue of $5.085-5.125 billion and non-GAAP earnings of $3.03-3.07 per share. Analysts are projecting top line to come in at $5.11 billion and adjusted EPS of $3.05.