Demand cuts risk for three tech leaders

Article Excerpt

AGILENT TECHNOLOGIES INC. $40 (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 327.8 million; Market cap: $13.1 billion; Price-to-sales ratio: 3.2; Dividend yield: 1.2%; TSINetwork Rating: Average; www.agilent.com) makes testing equipment for medical research labs. In November 2015, the company paid $242 million for Seahorse Bioscience. This firm makes equipment that lab researchers use to measure cellular response to new drugs. That helps pharmaceutical firms develop new treatments for cancer and infectious diseases. The company also enhanced its product line by purchasing Cartagenia, a Belgian firm that makes software for Agilent’s medical-testing equipment. It paid $60 million euros for this business. Excluding integration costs and other unusual items, Agilent earned $153 million, or $0.46 a share, in its fiscal 2016 first quarter, which ended January 31, 2016. That’s up 10.1% from $139 million, or $0.41 a share, a year earlier. Revenue was flat at $1.03 billion. Agilent gets 65% of its revenue from outside the U.S. If you exclude…