We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Agilent (A) Down 0.5% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Agilent Technologies (A - Free Report) . Shares have lost about 0.5% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Agilent due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Agilent Q4 Earnings & Revenues Surpass Estimates
Agilent Technologies reported fourth-quarter fiscal 2021 earnings of $1.21 per share, beating the Zacks Consensus Estimate by 3.4%. The bottom line improved 23% year over year and 10%, sequentially.
Revenues of $1.66 billion came ahead of the Zacks Consensus Estimate of $1.65 billion. The top line was up 12% on a reported basis and 11% on a core basis from the year-ago quarter’s number. In addition, the figure increased 4.7% from the previous quarter’s level.
Top-line growth was driven by strong growth across Americas and China. Also, a robust performance delivered by all the operating segments contributed well.
Solid momentum across the Analytical Laboratory market, which grew 11% year over year and accounted for 85% of the total revenues, aided the results. Strong performance in the pharma and biotech, and chemical and energy, accelerated revenue growth in this end-market.
Additionally, Agilent witnessed 11% year over year growth in revenues generated by the diagnostic (Dx) and clinical end market (15% of total revenues). Higher diagnostic demand and strength in A’s cell analysis and mass spectrometry businesses drove the top line in this market.
Segments in Detail
Agilent has three reporting segments, namely Life Sciences & Applied Markets Group (LSAG), Agilent Cross Lab Group (ACG), and Diagnostics and Genomics Group (DGG).
LSAG: The segment accounted for $747 million or 45% of its total revenues, up 11% year over year. This outperformance was driven by a solid momentum across pharma, and chemical and energy markets. Also, strength in cell analysis, liquid chromatography and mass spectrometry platforms aided the results.
ACG: Revenues from the segment were $572 million, accounting for 34% of total revenues. Also, the top line improved 10% year over year, driven by strong growth in consumables revenues. Also, growing momentum among the contract and on-demand services contributed well.
DGG: Revenues increased 16% year over year to $341 million, accounting for the remaining 21% of total revenues. Top-line growth was driven by solid demand for genomics instrumentation and strength in Cancer Dx.
Operating Results
For the fiscal fourth quarter, the gross margin in the LSAG segment expanded 20 basis points (bps) on a year-over-year basis to 59.4%.
DGG gross margin expanded 160 bps on a year-over-year basis to 52.5%. Further, ACG gross margin expanded 160 bps to 53.4%.
Research & development costs were $116 million, up 13.7% year over year. As a percentage of revenues, the figure expanded 10 bps year over year.
Selling, general & administrative expenses were $389 million, which inched up 0.5% year over year. As a percentage of revenues, the figure contracted 270 bps year over year.
Operating margin for the fiscal fourth quarter was 23.7%, which expanded 350 bps on a year-over-year basis.
Segment-wise, the operating margin for LSAG expanded 180 bps year over year to 26.6%. The DGG segment’s operating margin expanded 50 bps on a year-over-year basis to 20.8%. ACG operating margin was 29.9%, which expanded 220 bps from the year-ago quarter’s level.
Balance Sheet
As of Oct 31, 2021, Agilent’s cash and cash equivalents were $1.48 billion, up from $1.43 billion on Jul 31, 2021. Short-term investments were $91 million at the end of the reported quarter, which was nil at the end of the previous quarter.
Accounts receivables were $1.17 billion at the fiscal fourth quarter-end, up from $1.12 billion at the fiscal third quarter-end.
Total debt (short + long term) was $2.73 billion for the reported quarter compared with $2.86 billion in the prior quarter. There was no short-term debt as of Oct 31, 2021.
Guidance
For the first-quarter fiscal 2022, Agilent expects revenues of $1.64-$1.66 billion, indicating growth between 5.9% and 7.2% on both reported and core basis.
Non-GAAP earnings per share are expected to be $1.16-1.18.
For fiscal 2022, Agilent expects revenues in the range of $6.65-$6.73 billion, reflecting growth of 5.2-6.5% on a reported basis and 5.5-7% on a core basis.
Also, management anticipates non-GAAP earnings in the range of $4.76-$4.86 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Agilent has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Agilent has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Agilent (A) Down 0.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Agilent Technologies (A - Free Report) . Shares have lost about 0.5% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Agilent due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Agilent Q4 Earnings & Revenues Surpass Estimates
Agilent Technologies reported fourth-quarter fiscal 2021 earnings of $1.21 per share, beating the Zacks Consensus Estimate by 3.4%. The bottom line improved 23% year over year and 10%, sequentially.
Revenues of $1.66 billion came ahead of the Zacks Consensus Estimate of $1.65 billion. The top line was up 12% on a reported basis and 11% on a core basis from the year-ago quarter’s number. In addition, the figure increased 4.7% from the previous quarter’s level.
Top-line growth was driven by strong growth across Americas and China. Also, a robust performance delivered by all the operating segments contributed well.
Solid momentum across the Analytical Laboratory market, which grew 11% year over year and accounted for 85% of the total revenues, aided the results. Strong performance in the pharma and biotech, and chemical and energy, accelerated revenue growth in this end-market.
Additionally, Agilent witnessed 11% year over year growth in revenues generated by the diagnostic (Dx) and clinical end market (15% of total revenues). Higher diagnostic demand and strength in A’s cell analysis and mass spectrometry businesses drove the top line in this market.
Segments in Detail
Agilent has three reporting segments, namely Life Sciences & Applied Markets Group (LSAG), Agilent Cross Lab Group (ACG), and Diagnostics and Genomics Group (DGG).
LSAG: The segment accounted for $747 million or 45% of its total revenues, up 11% year over year. This outperformance was driven by a solid momentum across pharma, and chemical and energy markets. Also, strength in cell analysis, liquid chromatography and mass spectrometry platforms aided the results.
ACG: Revenues from the segment were $572 million, accounting for 34% of total revenues. Also, the top line improved 10% year over year, driven by strong growth in consumables revenues. Also, growing momentum among the contract and on-demand services contributed well.
DGG: Revenues increased 16% year over year to $341 million, accounting for the remaining 21% of total revenues. Top-line growth was driven by solid demand for genomics instrumentation and strength in Cancer Dx.
Operating Results
For the fiscal fourth quarter, the gross margin in the LSAG segment expanded 20 basis points (bps) on a year-over-year basis to 59.4%.
DGG gross margin expanded 160 bps on a year-over-year basis to 52.5%. Further, ACG gross margin expanded 160 bps to 53.4%.
Research & development costs were $116 million, up 13.7% year over year. As a percentage of revenues, the figure expanded 10 bps year over year.
Selling, general & administrative expenses were $389 million, which inched up 0.5% year over year. As a percentage of revenues, the figure contracted 270 bps year over year.
Operating margin for the fiscal fourth quarter was 23.7%, which expanded 350 bps on a year-over-year basis.
Segment-wise, the operating margin for LSAG expanded 180 bps year over year to 26.6%. The DGG segment’s operating margin expanded 50 bps on a year-over-year basis to 20.8%. ACG operating margin was 29.9%, which expanded 220 bps from the year-ago quarter’s level.
Balance Sheet
As of Oct 31, 2021, Agilent’s cash and cash equivalents were $1.48 billion, up from $1.43 billion on Jul 31, 2021. Short-term investments were $91 million at the end of the reported quarter, which was nil at the end of the previous quarter.
Accounts receivables were $1.17 billion at the fiscal fourth quarter-end, up from $1.12 billion at the fiscal third quarter-end.
Total debt (short + long term) was $2.73 billion for the reported quarter compared with $2.86 billion in the prior quarter. There was no short-term debt as of Oct 31, 2021.
Guidance
For the first-quarter fiscal 2022, Agilent expects revenues of $1.64-$1.66 billion, indicating growth between 5.9% and 7.2% on both reported and core basis.
Non-GAAP earnings per share are expected to be $1.16-1.18.
For fiscal 2022, Agilent expects revenues in the range of $6.65-$6.73 billion, reflecting growth of 5.2-6.5% on a reported basis and 5.5-7% on a core basis.
Also, management anticipates non-GAAP earnings in the range of $4.76-$4.86 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Agilent has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Agilent has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.