Agilent 3Q Earnings Plunge
SAN JOSE, Calif. (AP) _ Shares of computer products maker Agilent Technologies Inc. plunged more than 25 percent in after-hours trading Thursday after the company said its third-quarter earnings would fall well short of analysts’ expectations.
Saying it was unable to keep up with demand for its products, Agilent said it expects its earnings for the third quarter ending July 31 will fall well below the consensus estimate of 35 cents per share.
The Palo-Alto-based spinoff of computer giant Hewlett-Packard said that on Aug. 17, it will likely report quarterly earnings of 18 to 22 cents per share. In the year-ago period, Agilent earned 36 cents per share.
Revenue will also likely fall below expectations, the company said.
After shares fell $1.063 to $73 in regular trading on the New York Stock Exchange, they plummeted to $54, down $19, in after-hours trading.
Agilent said it is seeing an unprecedented demand for its products and services, particularly in the communications marketplace, but parts shortages and capacity constraints are hampering shipments from keeping pace with incoming orders.
The company added that continued weaknesses in its health care solutions and chemical analysis businesses would contribute to the shortfall.
With initiatives underway to increase shipments, Agilent officials said they expect financial results to improve in the fourth quarter and fall in line with analyst expectations.