Shares of Agilent Technologies fell in after-hours trading after the company reduced its outlook for the year as customers grew more cautious with their spending.
Shares were down 6.4% to $120.50 late Tuesday after closing the regular trading session at $128.64. They had been down 14% this year.
The Santa Clara, Calif.-based maker of laboratory instruments earlier trimmed both its sales and per-share earnings outlook for the year, and issued guidance for the current fiscal third quarter below Wall Street expectations.
The lowered view came after Agilent reported higher profit for its second quarter on better-than-projected sales.
On the company’s earnings call, Chief Executive Mike McMullen said that stresses in the banking system have prompted its customers, especially early stage biotech companies, to be more conservative with their budgets.
“This has affected instrument spending across most end markets,” McMullen said.
Other companies are taking longer to approve spending, he added.
“We expect this constraining capital environment to remain in place throughout the course of our fiscal year,” McMullen said.