What to Note Ahead of Agilent Technologies' (A) Q4 Earnings
Agilent Technologies A is set to report its fourth-quarter fiscal 2023 results on Nov 20.
For the fiscal fourth quarter, A expects revenues of $1.655-$1.705 billion, suggesting a decline between 12.2% and 9.5% on a core basis from the year-ago fiscal quarter’s actuals. The Zacks Consensus Estimate for the same is pegged at $1.67 billion, implying a decline of 9.9% from the year-ago fiscal quarter’s reported figure.
Agilent’s non-GAAP earnings are expected to be $1.33-$1.36 per share. The Zacks Consensus Estimate for earnings is pegged at $1.34 per share, indicating a fall of 12.4% from the year-ago fiscal 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 4.76%.
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 growing momentum across Agilent’s Cross Lab Group (“ACG”) and Diagnostics and Genomics Group (“DGG”) segments during the fiscal fourth quarter.
The ACG segment is likely to have benefited from robust portfolio offerings. Strength in services and solid momentum across all regions and end markets are likely to have contributed well.
The Zacks Consensus Estimate for ACG is pegged at $401 million, implying growth of 5.2% from the year-ago fiscal 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 fourth quarter. Also, solid demand for diagnostic tests is expected to have aided the performance of the company’s pathology business.
However, weakness in genomics and Resolution Bioscience businesses might have been a negative
The Zacks Consensus Estimate for DGG is pegged at $345 million, implying a fall of 2% from the year-ago fiscal 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, the weakening pharma market, macroeconomic uncertainties and soft market conditions in China are likely to have scaled down the LSAG segment’s revenues in the fiscal fourth quarter.
The Zacks Consensus Estimate for LSAG is pegged at $925 million, implying a decline of 17.1% from the year-ago fiscal quarter’s reported figure.
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 #4 (Sell) and an Earnings ESP of -0.28% at present. You can uncover the best stocks to buy or sell before they’re 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.
Costco Wholesale COST has an Earnings ESP of +4.26% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco is set to announce its first-quarter fiscal 2024 results on Dec 14. COST shares have gained 29.6% year to date.
Synopsys SNPS has an Earnings ESP of +0.94% and a Zacks Rank #2.
Synopsys is set to announce its fourth-quarter fiscal 2023 results on Nov 29. SNPS shares have declined 24.9% year to date.
Snowflake SNOW has an Earnings ESP of +67.33% and a Zacks Rank #2.
Snowflake is set to announce its third-quarter fiscal 2024 results on Nov 29. SNOW shares have gained 86% year to date.
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