Agilent Technologies Q2 revenue up 6 percent
Second-quarter GAAP income from continuing operations was $91 million, or $0.28 per share. Last year's second-quarter GAAP income from continuing operations was $92 million, or $0.27 per share.
During the second quarter, Agilent had intangible amortization of $40 million, transformation costs of $10 million, acquisition and integration costs of $12 million, and $2 million of other costs. Excluding those items, and a tax benefit of $10 million, Agilent reported second-quarter adjusted income from continuing operations of $145 million, $0.44 per share.
Agilent's adjusted operating margin was 19.4 percent for the second quarter, up 110 basis points over a year ago.
Second-quarter revenue of $495 million from Agilent's Life Sciences and Applied Markets Group (LSAG) increased 5 percent year over year (up 8 percent on a core basis), led by strong growth in pharma, food and environmental markets. LSAG's Q2 operating margin was 19.0 percent.
Second-quarter revenue of $346 million from the Agilent CrossLab Group (ACG) grew 8 percent year over year (up 10 percent on a core basis). Both services and consumables continued to see solid growth worldwide. ACG's operating margin was 21.5 percent for the quarter.
Second-quarter revenue of $178 million from Agilent's Diagnostics and Genomics Group (DGG) increased 5 percent against a tough year-over-year compare (also up 5 percent on a core basis), reflecting strength in its diagnostics and genomics businesses. DGG's operating margin for the quarter was 15.0 percent.
Agilent expects third-quarter 2016 revenue in the range of $1.03 billion to $1.05 billion. Third-quarter non-GAAP earnings are expected to be in the range of $0.45 to $0.47 per share.
For fiscal year 2016, Agilent expects revenue of $4.16 billion to $4.18 billion and non-GAAP earnings of $1.88 to $1.92 per share. The guidance is based on April 29, 2016 exchange rates.
Agilent is also raising its full-year operating cash flow guidance from $650 million to $740 million. There is no change to the capital expenditure guidance of $140 million. ■