Agilent Predicts Third-Quarter Earnings Below Forecasts
(07/20/00, 5:17 p.m. ET)
By Reuters
Agilent Technologies said Thursday it expects to report third-quarter earnings of 18 to 22 cents per diluted share, well below the consensus analyst estimate of 35 cents per share.
The Palo Alto, Calif., spinoff of Hewlett-Packard (stock: HWP) also warned that revenue would come in below plan.
The company said demand for its communications products and services is extremely strong, but capacity constraints and parts shortages are preventing it from keeping shipments in pace with incoming orders.
It also said continued weakness in its healthcare solutions business and softness in its chemical analysis business would contribute to the shortfall. It expects the chemical analysis operation to post a modest loss during the quarter.
The expected earnings of 22 cents per diluted share compares with earnings of 36 cents per share in the year-ago quarter.
"We're very frustrated because we're not fully satisfying the unprecedented demand in our communications businesses," Agilent (stock: A) chief executive Ned Barnholt said in a statement. "People throughout the organization are working very hard to ramp shipments, but with less than two weeks left in the quarter and the difficulties in obtaining critical parts, it's clear that revenue will come in below plan."
The company said it has initiatives underway to increase shipments and to balance expenses with revenue, which it expects will bring improved results in the fourth quarter.
It said it continues to feel comfortable with the fourth-quarter consensus estimate of 39 cents per share, "and we think there may be some upside potential depending on parts availability."
gruesse
der Kaiser
(07/20/00, 5:17 p.m. ET)
By Reuters
Agilent Technologies said Thursday it expects to report third-quarter earnings of 18 to 22 cents per diluted share, well below the consensus analyst estimate of 35 cents per share.
The Palo Alto, Calif., spinoff of Hewlett-Packard (stock: HWP) also warned that revenue would come in below plan.
The company said demand for its communications products and services is extremely strong, but capacity constraints and parts shortages are preventing it from keeping shipments in pace with incoming orders.
It also said continued weakness in its healthcare solutions business and softness in its chemical analysis business would contribute to the shortfall. It expects the chemical analysis operation to post a modest loss during the quarter.
The expected earnings of 22 cents per diluted share compares with earnings of 36 cents per share in the year-ago quarter.
"We're very frustrated because we're not fully satisfying the unprecedented demand in our communications businesses," Agilent (stock: A) chief executive Ned Barnholt said in a statement. "People throughout the organization are working very hard to ramp shipments, but with less than two weeks left in the quarter and the difficulties in obtaining critical parts, it's clear that revenue will come in below plan."
The company said it has initiatives underway to increase shipments and to balance expenses with revenue, which it expects will bring improved results in the fourth quarter.
It said it continues to feel comfortable with the fourth-quarter consensus estimate of 39 cents per share, "and we think there may be some upside potential depending on parts availability."
gruesse
der Kaiser
