(AOF) – The specialist in test equipment in the field of life sciences Agilent has unveiled better than expected results and raised its annual forecast. In the third quarter, which ended at the end of July, the group generated net profit of $329 million, or $1.10 per share, compared to respectively $264 million and 86 cents per share a year earlier. Excluding items, earnings per share were $1.34, 14 cents above consensus.
Revenue rose 8% to $1.72 billion, beating expectations by just under 5%. Internal growth amounted to 13%.
Over the year, the group is now targeting earnings per share of between 5.06 and 5.08 dollars for sales of 6.75 to 6.775 billion dollars, representing internal growth of 9.9% to 10.3%. Agilent previously expected earnings per share of between $4.86 and $4.93 on sales of $6.67 billion to $6.73 billion, organic growth of 8% to 9%.
“Strong third quarter results, coupled with orders that continue to outpace revenues, underscores the continued strength and momentum of our diversified business. We are once again raising our revenue and profit outlook for the entire year,” CEO Mike McMullen said.
Wall Street forecasts for its part 4.85 dollars per share and 6.6 billion dollars.
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The collective catering giants are reviewing their prices
In the first half (ended at the end of March) of its 2021-2022 financial year, Elior benefited from a jump of nearly 20% in its activity to 2.2 billion euros. However, its losses increased from 53 million a year earlier to 266 million euros, partly due to a deterioration in margins. This movement is linked to the inflation of food and energy prices. To remedy this, the group has set up a global and systematic program to renegotiate all price lists with its customers.
As for Sodexo, price increases have already taken place. During the third quarter, they increased by more than 5% year-on-year. The group expects a further increase in tariffs of 4 to 5% by the end of the year. Despite strong growth in its results in the first half (ending at the end of February), the group was cautious for the second half of the year due to an environment that remains uncertain. Executives estimate that the pre-covid margin will be reached again in 2023.
Road transport wants to accelerate its energy transition
The weight of fuel continues to climb in the cost structure of carriers, whereas it usually represents 20% of the cost price. The players are well aware of the need to carry out the energy transition to free themselves from their great dependence on the price of fuel. However, professionals have to face a lack of supply of clean heavy vehicles at affordable prices. Moreover, the use of hydrogen is still too limited. As for CNG (Natural Gas For Vehicles), although investments have been made in the past, gas trucks are not currently running given the soaring prices. Professionals are therefore asking for support from the public authorities to accelerate their transition.
An inevitable race for new blockbusters
The patent for Merck’s star product, the cancer drug Keytruda, which accounts for more than 35% of its sales, expires in 2028. Despite the loss, since 2019, of the patents for its three star products (Avastin, Herceptine, Rituxan) Roche was able to renew its portfolio by bringing new molecules to market. However, the discovery and launch of new drugs are increasingly expensive. AstraZeneca spends about $6 billion a year on R&D in a pharmaceutical industry where the life of a patent only lasts ten to fifteen years. This leads laboratories to withdraw from certain activities. Thus J&J, Pfizer, GSK and, no doubt, Novartis soon prefer to refocus on specialty drugs and abandon any ancillary activity.
Growth of the French market in value
According to the Gfk institute, the sector generated sales of 4.8 billion euros in 2021, an increase of 2% compared to 2020. The product families which benefited from the best performances are in particular helmets and accessories as well as televisions. However, while the French consumer electronics market grew in value last year, it fell in terms of volumes (-2% with 51 million units sold). This trend can be explained by a move upmarket in products: Bluetooth speakers are more powerful or even televisions use more innovative technologies. Thus the development of technologies that improve image resolution (Oled, Qled, miniled) and the size of screens have caused an increase of more than 20% in the average price. Consumers are also looking for more sustainable products.