2023-05-24 08:00:55 ET
Agilent Technologies ( NYSE: A ) shares continued to tumble with a ~10% decline in the pre-market Wednesday as KeyBanc downgraded the life sciences company after it decided to trim the full-year outlook with its Q2 FY23 financials.
Despite an earnings beat for the quarter, Agilent ( A ) cut its FY23 guidance for revenue and non-GAAP EPS to $6.93B-$7.03B and $5.60-$5.65 from $7.03B - 7.10B and $5.65-$5.70 per share below the consensus, respectively.
Citing the need for margin recovery and a lack of revenue catalysts in the second half, KeyBanc analyst Paul Knight downgraded the Santa Clara, California-based lab tool maker to Sector Weight from Overweight.
Knight opines that Agilent ( A ) is not assuming a recovery within its full-year outlook and notes that the company’s Life Sciences and Applied Markets Group (LSAG) has a heavy analytical instrument exposure.
“With growth rates resetting to pre-pandemic levels and no clear catalysts in sight, we think shares are fairly valued,” the analyst added in a research note.
More on Agilent
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- Danaher Vs. Agilent: Which Is The Better Option For Long-Term Investors
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Agilent slips 10% as KeyBanc downgrades after guidance cut