) announced its 3-year collaboration with the University of
Houston, U.S., to further research on the geology and composition
of crude oil. The collaborative research will also consider the
mechanics of shale gas extraction with a view to minimize its
harmful effect on ground water.
The University's Earth and Atmospheric Sciences Department to
further its petroleum research will use Agilent's expertise in test
instruments. Under the program, the University intends to create
products to facilitate the discovery and exploration of crude
Agilent is supplying vital test instruments worth $1.0 million,
which have the capabilities to identify and measure various
compounds of a sample. The study will be useful in locating new oil
rich deposits. Agilent's test and measurement technology will also
help to identify superior processes that could improve the output
and bring down the cost of refined products going forward.
According to a research conducted by Energy and Capital, global
oil output is expected to reach 110 million barrels a day by
Of course, Agilent does have some formidable competition from
National Instruments Corporation
) among others.
Agilent's revenue in the third quarter was flat sequentially and
up 1.9% year over year, short of management's expectations of a
2-3% sequential increase ($1.77 billion to $1.79 billion). The
Electronic Measurement segment contributed 49.0% of revenue. The
weakness was on the computing/semiconductor sides of the business.
The Life Sciences segment generated 23.0% of revenue, down 1.0%
sequentially and up 2.1% from last year. The Chemical Analysis
segment generated 22.0% of third quarter revenue, down 8.8%
sequentially and 7.0% year over year. The sequential decline was
largely because of weakness in food testing.
Currently, Agilent Technologies has a Zacks #5 Rank, implying a
short-term 'Strong Sell' rating.
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