Agilent Thrives in Niche Markets

Article Excerpt

Agilent is a leader in two niche markets: testing equipment for the electronic and medical science industries. Both fields are expanding, and Agilent continues to maintain its dominance with high research spending and selected acquisitions. It’s also using its strong cash flow to buy back shares. AGILENT TECHNOLOGIES INC. $36 (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 370.0 million; Market cap: $13.3 billion; WSSF Rating: Average) makes electronic test and measurement equipment. Manufacturers use these products to improve the reliability of a wide variety of electronic products, such as cell phones and communication network components. This business accounts for 60% of Agilent’s revenue. The remaining 40% comes from measurement equipment for medical research labs and drug developers. Agilent’s products also help government agencies test for biological and chemical contaminants in air, water, soil and food. Agilent’s revenue rose from $6.1 billion in 2003 (fiscal years end October 31) to $7.2 billion in 2004, but slipped to $6.9…