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Agilent (A) to Report Q2 Earnings: What's in the Offing?

Agilent Technologies A is set to report its second-quarter fiscal 2024 results on May 29.

For the fiscal second quarter, the company expects revenues of $1.560-$1.590 billion, suggesting a decline of 9.1-7.4% on a reported basis and 8.4-6.7% on a core basis from the year-ago quarter. The Zacks Consensus Estimate for the same is pegged at $1.58 billion, implying a decline of 7.9% from the year-ago quarter’s reported figure.

Agilent’s non-GAAP earnings are expected to be $1.17-$1.20 per share. The Zacks Consensus Estimate for earnings is pegged at $1.19 per share, indicating a fall of 6.3% from the year-ago quarter’s reported figure.

Agilent’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matched the same once, the average being 3.5%.

Agilent Technologies, Inc. Price and EPS Surprise

 

Agilent Technologies, Inc. Price and EPS Surprise
Agilent Technologies, Inc. Price and EPS Surprise

Agilent Technologies, Inc. price-eps-surprise | Agilent Technologies, Inc. Quote

Factors to Note

The company is expected to have gained from the growing momentum across Agilent’s Cross Lab Group (“ACG”) and Diagnostics and Genomics Group (“DGG”) segments in the fiscal second quarter.

The ACG segment is likely to have benefited from robust portfolio offerings. Strength in enterprise service contracts and solid momentum across all regions, except for China, are likely to have contributed well.

The Zacks Consensus Estimate for ACG is pegged at $396 million, implying growth of 2.3% from the year-ago quarter’s reported figure.

Agilent’s strength in the Nucleic Acid Solutions Division business is expected to have continued benefiting the DGG segment’s performance in the fiscal second quarter. Also, solid demand for diagnostic tests is expected to have aided the performance of the company’s pathology business.

The Zacks Consensus Estimate for DGG is pegged at $433 million, implying growth of 19.6% from the year-ago quarter’s reported figure.

Strength in liquid chromatography and liquid chromatography-mass spectrometry and lab consumables is expected to have benefited Agilent’s Life Sciences & Applied Markets Group (“LSAG”) segment in the quarter under review.

However, macroeconomic uncertainties and sluggish capital equipment spending by customers are likely to have scaled down the LSAG segment’s revenues in the fiscal second quarter.

The Zacks Consensus Estimate for LSAG is pegged at $750 million, implying a decline of 22.5% from the year-ago quarter’s reported figure.

In addition, weakness across Chemistry & Advanced Materials, Pharma, Food and Diagnostics and Clinical markets is likely to have been concerning. Softening demand in China is expected to have been a negative for Agilent

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Agilent Technologies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Agilent Technologies has a Zacks Rank #3 and an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Dell Technologies DELL has an Earnings ESP of +2.30% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dell Technologies’ shares have gained 109.4% year to date. DELL is set to report first-quarter fiscal 2025 results on May 30.

Broadcom AVGO has an Earnings ESP of +3.66% and a Zacks Rank #3 at present.

Broadcom shares have rallied 26.1% year to date. AVGO is scheduled to release second-quarter fiscal 2024 results on Jun 12.  

HP HPQ has an Earnings ESP of +0.92% and a Zacks Rank #3.  

The stock has risen 8.8% year to date. HPQ is set to report its second-quarter fiscal 2024 results on May 29.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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