Revenue during the quarter grew 8.15 percent to $1,102 million from $1,019 million in the previous year period. Gross margin for the quarter expanded 171 basis points over the previous year period to 53.72 percent. Total expenses were 81.76 percent of quarterly revenues, down from 87.14 percent for the same period last year. This has led to an improvement of 538 basis points in operating margin to 18.24 percent.

Operating income for the quarter was $201 million, compared with $131 million in the previous year period.

"The Agilent team delivered another excellent quarter," said Mike McMullen, Agilent president and chief executive officer. "Both revenue and earnings per share exceeded the high range of guidance. We saw a strong pick up in the Chemical and Energy business after modest gains last quarter, and strong growth in Pharma and Europe also contributed to the upside." "We continue to deliver on our long-term focus of driving above market growth, expanding operating margins, and deploying capital in a balanced manner,” he added. “Looking ahead, we are confident in our company’s prospects, and we are raising our full-year core revenue growth and earnings expectations."

For fiscal year 2017, Agilent Technologies forecasts revenue to be in the range of $4,360 million to $4,380 million. The company expects diluted earnings per share to be in the range of $2.15 to $2.21 on adjusted basis.

For the third-quarter 2017, Agilent Technologies forecasts revenue to be in the range of $1,060 million to $1,080 million. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.49 to $0.51.

Operating cash flow improves marginally
Agilent Technologies Inc. has generated cash of $373 million from operating activities during the first half, up 2.19 percent or $8 million, when compared with the last year period.

The company has spent $144 million cash to meet investing activities during the first six months as against cash outgo of $136 million in the last year period.

The company has spent $125 million cash to carry out financing activities during the first six months as against cash outgo of $107 million in the last year period.

Cash and cash equivalents stood at $2,389 million as on Apr. 30, 2017, up 11.69 percent or $250 million from $2,139 million on Apr. 30, 2016.

Working capital increases
Agilent Technologies Inc. has recorded an increase in the working capital over the last year. It stood at $2,613 million as at Apr. 30, 2017, up 10.96 percent or $258 million from $2,355 million on Apr. 30, 2016. Current ratio was at 3.20 as on Apr. 30, 2017, up from 3.08 on Apr. 30, 2016.

Cash conversion cycle (CCC) has decreased to 55 days for the quarter from 113 days for the last year period. Days sales outstanding went down to 52 days for the quarter compared with 54 days for the same period last year.

Days inventory outstanding has decreased to 48 days for the quarter compared with 102 days for the previous year period. At the same time, days payable outstanding went up to 45 days for the quarter from 43 for the same period last year.