Medical equipment maker Agilent's downbeat annual forecast clouds fourth-quarter beat

Reuters06:06
Medical equipment maker Agilent's downbeat annual forecast clouds fourth-quarter beat

Nov 25 (Reuters) - Agilent A.N forecast its annual profit below analysts' estimates on Monday, as a recovery is ongoing in the market for medical tools and equipment used in clinical studies, sending its shares down more than 2% after the bell.

Medical equipment makers such as Agilent are seeing soft demand from early-stage biotechs, as these smaller drug development companies remain cautious with investments even as recent rate cuts are expected to improve the funding environment for such clients.

The California-based company's forecast is in contrast to its larger peer Thermo Fisher TMO.N, which raised its annual profit target last month.

Agilent expects to earn an adjusted profit of $5.54 to $5.61 per share for fiscal 2025, below analysts' average estimate of $5.66 per share, according to data compiled by LSEG.

The company reported an adjusted profit per share of $1.46 for the fourth quarter, beating estimates of $1.41.

Its total quarterly sales of $1.70 billion were also above analysts' expectation of $1.67 billion.

Earlier in the day, Agilent had also said it would separate its businesses into three segments — life sciences and diagnostics markets group, applied markets group and Agilent crosslab group — as it aims to "become a nimbler company".

(Reporting by Christy Santhosh in Bengaluru; Editing by Shilpi Majumdar)

((Christy.Santhosh@thomsonreuters.com))

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