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What's in the Cards for Agilent (A) in Q1 Earnings Season?

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Agilent Technologies, Inc. (A - Free Report) is set to report first-quarter fiscal 2018 on Feb 14.

Notably, the company has beaten the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average positive surprise of 12.20%.

Last quarter, Agilent delivered a positive earnings surprise of 6.35%. Earnings of 67 cents increased 13.6% sequentially as well as year over year.

Revenues increased 8% sequentially and 7% year over year to $1.19 billion. Top line growth was driven by strength across all product lines, particularly in Europe and Americas.

For first-quarter fiscal 2018, Agilent expects revenues in the range of $1.145-1.165 billion. Non-GAAP earnings are expected between 55 cents and 57 cents per share.

Let’s see how things are shaping up for this announcement.

Expanding Product Portfolio

Agilent Technologies has shifted its focus to life sciences, genomics, diagnostics and wireless test markets, in which it has made a few important acquisitions and alliances.

Broad-based growth in all product lines is the driver for Agilent. We believe that the company’s continuous effort on expanding product portfolio and strategic acquisitions is likely to drive results in the soon-to-be-reported quarter.

In the first quarter fiscal 2018, Agilent completed the acquisition of Luxcel Biosciences, which expands its cell analysis portfolio. This acquisition brings in assay kits that are easy to use and compatible with industry-standard plate-readers. Hence, the deal is likely to benefit Agilent’s position in the pharmaceutical industry.

Further, the integration of U.K.-based Cobalt Light Systems will strengthen Agilent’s position in the high-growth Raman spectroscopy market.

Segment Estimates Positive

Life Sciences & Applied Markets Group (LSAG) revenues are expected to increase, driven by growing chemical, energy, pharma and food end markets. Revenues from this segment, as per the Zacks Consensus Estimate, are currently pegged at $578 million.

The consensus estimate for revenues for the Agilent Cross Lab Group (ACG) stands at $401 million.

Moreover, Diagnostics and Genomics Group (DGG) is likely to benefit from increasing demand for medical services and products. Revenues from this segment, as per the Zacks Consensus Estimate, are currently pegged at $181 million.

Agilent Technologies, Inc. Price and EPS Surprise

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

What Our Model Suggests

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Agilent has a Zacks Rank #3 and its Earnings ESP is +1.21%. Therefore, our proven model shows that the company is likely to deliver a positive surprise this quarter.

Other Stocks That Warrant a Look

Here are a few other stocks worth considering as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.

Micron Technology (MU - Free Report) has an Earnings ESP of +1.83% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

HubSpot (HUBS - Free Report) has an Earnings ESP of +1.32% and a Zacks Rank #3.

Broadcom (AVGO - Free Report) has an Earnings ESP of +1.08% and a Zacks Rank #3.

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