Agilent Technologies Set to Release Q2 Earnings Amid Market Challenges

Agilent Technologies, Inc. (A), with a market capitalization of $30.6 billion, stands as a prominent player in the life sciences, diagnostics, and applied chemical sectors. Based in Santa Clara, California, the company was founded in 1999 as a spin-off from Hewlett-Packard. Agilent provides laboratories globally with a variety of instruments, software, services, and consumables.

Upcoming Fiscal Earnings Release

The company is set to report its fiscal second-quarter earnings after the market closes on Wednesday, May 28. Analysts anticipate that Agilent will announce a profit of $1.27 per share on a diluted basis, representing a 4.1% increase from $1.22 per share in the same quarter last year. Notably, Agilent has exceeded Wall Street’s EPS expectations in each of its last four quarterly reports.

Expectations for Fiscal Year 2024

For the fiscal year ending in October, projections indicate that Agilent is likely to report an EPS of $5.54, marking a 4.7% increase from $5.29 in fiscal 2024. Additionally, EPS is expected to rise to $6.04 in fiscal 2026, reflecting a year-over-year growth of 9%.

Performance Comparison

Over the past year, shares of Agilent have dropped by 23%, underperforming the S&P 500, which gained 8.7%, and the Health Care Select Sector SPDR Fund, which saw a slight decline during the same period.

Recent Earnings Impact

In February, Agilent’s stock fell 5.5% following its fiscal Q1 earnings release. The company reported an adjusted EPS of $1.31, up nearly 2% year-over-year, beating Wall Street’s estimate of $1.27. Revenue also increased modestly by 1.4% to $1.7 billion, exceeding expectations. However, guidance that fell short of forecasts contributed to the stock’s decline.

Second Quarter Revenue Guidance

For its second quarter, Agilent projected revenue between $1.61 billion and $1.65 billion, which is lower than analyst estimates. The forecast for FY2025 anticipates revenue in the range of $6.68 billion to $6.76 billion, indicating a modest growth rate of 2.6% to 3.8%. Non-GAAP EPS is projected between $5.54 and $5.61.

Analyst Consensus and Price Target

Despite recent challenges, analysts maintain a generally bullish outlook on Agilent’s stock, with an overall “Moderate Buy” rating. Among the 16 analysts covering the stock, opinions are balanced, with half recommending a “Strong Buy” and the other half advocating a “Hold.” The average price target set by analysts is $139, suggesting a potential upside of 29.4% from current levels.

On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. The information and data provided are for informational purposes only. For more details, please refer to the Barchart Disclosure Policy here.

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