Agilent Technologies Inc (NYSE: A) shares declined Wednesday, after the company reported better-than-expected earnings for its third quarter.
On Tuesday, the Santa Clara, Calif.-based Agilent reported revenue of $1.20 billion for the third quarter ended July 31, 2018, up 8% year over year (up 6% on a core basis).
Third-quarter GAAP net income was $236 million, or $0.73 per share. Last year’s third-quarter GAAP net income was $175 million, or $0.54 per share.
During the third quarter, Agilent had intangible amortization of $26 million, acquisition and integration costs of $7 million, transformational initiatives of $4 million, business exit and divestitures of $1 million, $20 million of step-up gain on our initial Lasergen investment, and $5 million in other costs. Excluding these items and a tax benefit of $42 million,
Agilent reported third-quarter non-GAAP net income of $217 million, or $0.67 per share, up 14% year over year.
According to CEO Mike McMullen, "The Agilent team continues to capitalize on healthy end markets and delivered another strong quarter. Both earnings and revenue growth, led by China and the global pharma and chemical & energy end markets, exceeded expectations. In addition, we achieved our 14th consecutive quarter of improving our year-over-year core operating margins."
For fiscal year 2018, Agilent expects revenue of $4.86 billion to $4.88 billion and non-GAAP earnings of $2.69 to $2.71 per share. The guidance is based on July 31, 2018 currency exchange rates.
Shares hesitated 75 cents, or 1.1%, to $66.00
