(Reuters) -Agilent Technologies raised its annual revenue forecast on Wednesday after beating quarterly estimates, betting on improving demand for its medical tools and equipment used in lab research and drug development.
Life sciences firms, such as Agilent, have experienced weak order levels over the past two years stemming from reduced spending from biotech clients. However, contract research organizations have signaled steady demand from the industry for tools and services that are used in the development of novel medicines.
Agilent sees revenue to be between $6.91 billion and $6.93 billion for the year, compared to its prior outlook range of $6.73 billion to $6.81 billion. This is above the analysts’ average estimate of $6.79 billion, according to data compiled by LSEG.
The company now expects an annual profit between $5.56 and $5.59 per share, compared to its previous forecast of $5.54 to $5.61 apiece. Analysts expect a profit of $5.58 per share.
It also expects fourth-quarter revenue to be in the range of $1.82 billion to $1.84 billion, compared to estimates of $1.77 billion.
It sees a profit between $1.57 and $1.60 per share for the fourth quarter, compared to estimates of $1.60 per share.
The company’s third-quarter revenue came in at $1.74 billion, beating estimates of $1.67 billion.
Sales in its life sciences and diagnostics segment were at $670 million, beating the estimate of $641.5 million, while revenue from its CrossLab unit, which offers products and services for laboratory management, came in at $744 million, above estimates of $718.27 million.
Its adjusted profit for the quarter ended July 31 was $1.37 per share, in line with estimates.
(Reporting by Bageshri Banerjee and Sriparna Roy in Bengaluru; Editing by Alan Barona)
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