Agilent (A) to release second quarter earnings report: what’s at stake?

Agile technologies The A is scheduled to announce its second-quarter fiscal 2024 results on May 29.

For the fiscal second quarter, the company expects revenue of $1.560 billion to $1.590 billion, down 9.1% to 7.4% on a reported basis and 8.4% to 6.7% on a fundamental basis compared to the year-ago quarter. The Zacks Consensus Estimate for the same is $1.58 billion, down 7.9% from the year-ago quarter.

Agilent’s non-GAAP earnings are expected to be $1.17 to $1.20 per share. The Zacks Consensus Estimate is for earnings per share of $1.19, down 6.3% from year-ago quarter results.

Agilent’s earnings have topped the Zacks Consensus Estimate in three of the following four quarters and matched the same mark once, with an average gain of 3.5%.

Agilent Technologies, Inc. Price and EPS surprise

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

Factors to pay attention to

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

The ACG segment likely benefited from a solid portfolio offering. This was likely driven by strength in enterprise services contracts and solid momentum in all regions except China.

The Zacks Consensus Estimate for ACG is $396 million, up 2.3% from the year-ago quarter.

Agilent’s strength in the Nucleic Acid Solutions division is expected to continue to positively impact DGG segment performance in the fiscal second quarter. Strong demand for diagnostic tests is also expected to drive the company’s pathology business performance.

The Zacks Consensus Estimate for DGG is $433 million, up 19.6% from the year-ago quarter.

Strengths in liquid chromatography, liquid chromatography-mass spectrometry and laboratory materials are expected to benefit Agilent’s Life Sciences & Applied Markets Group (“LSAG”) segment during the quarter.

However, macroeconomic uncertainty and sluggish customer spending on capital equipment will likely result in reduced LSAG segment revenues in the fiscal second quarter.

The Zacks Consensus Estimate for LSAG is $750 million, down 22.5% from the year-ago quarter.

Additionally, weakening in the chemical and advanced materials, pharmaceutical, food and diagnostics, and clinical markets may be of concern. Weakening demand in China is expected to be unfavorable for Agilent

What our model says

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

Agilent Technologies currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. With our Earnings ESP filter, you can discover the best stocks to buy or sell before they are reported.

Stocks to consider

Here are some stocks worth considering because our model shows they have the right combination of elements to outperform this season.

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

Dell Technologies shares are up 109.4% year to date. DELL is scheduled to report first-quarter fiscal 2025 results on May 30.

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

Broadcom shares are up 26.1% year to date. AVGO is scheduled to report fiscal second-quarter 2024 results on June 12.

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

Since the beginning of the year, the company’s shares have increased by 8.8%. HPQ is scheduled to report fiscal second-quarter 2024 results on May 29.

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