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Agilent Technologies (A - Free Report) reported second-quarter fiscal 2021 earnings of 97 cents per share, beating the Zacks Consensus Estimate by 18.3%. Further, the bottom line improved 37% year over year but declined 8.5% sequentially.
Revenues of $1.52 billion surpassed the Zacks Consensus Estimate of $1.39 billion. Further, the figure was up 23% on a reported basis and 19% on a core basis from the year-ago quarter. However, it was down 1.5% from the previous quarter.
The year-over-year revenue improvement was driven by strong growth across all regions served and end-markets. Also, solid momentum across all the operating segments contributed well.
In terms of major markets, Analytical Laboratory and Dx& Clinical accounted for 85% and 15% of total revenues, up 21% and 13% on a core basis from the prior-year quarter, respectively.
Agilent Technologies, Inc. Price, Consensus and EPS Surprise
Agilent has three reporting segments — Life Sciences & Applied Markets Group (“LSAG”), Agilent Cross Lab Group (“ACG”), and Diagnostics and Genomics Group (“DGG”).
LSAG: The segment accounted for $674 million or 44% of its total revenues, up 28% year over year. This was driven by a strong environment across all the end markets, especially the pharma market. Also, strength in Cell Analysis, Liquid Chromatography and Mass Spectrometry platforms aided the results.
ACG: Revenues from the segment were $536 million, accounting for 35% of total revenues. Also, the top line improved 19% year over year, driven by the solid execution of cross-lab strategy. Also, strengthening momentum in China remained positive.
DGG: Revenues increased 20% year over year to $315 million, accounting for the remaining 21% of total revenues. The topline was driven by solid demand forgenomics instrumentation and consumables.Also, continued strong NASD ramp alongwith recovery in cancer diagnostics drove the results.
Operating Results
For the fiscal second quarter, gross margin in the LSAG segment expanded 130 basis points (bps) on a year-over-year basis to 59.4%.
DGG gross margin contracted 170 bps on a year-over-year basis to 53.4%. Also, ACG gross margin contracted 90 bps to 51.6%.
Research & development costs were $109 million, down 44.7% year over year, while selling, general & administrative expenses were $420 million, up 17.3% year over year.
Operating margin for the fiscal second quarter was 18.9%, which jumped significantly from 8.2%in the year-ago quarter.
Segment-wise, the operating margin for LSAG expanded 420 bps year over year to 22.9%. The DGG segment’s operating margin expanded 30 bps on a year-over-year basis to 21.9%. ACG operating margin was 26.3%, which contracted90 bps from the year-ago quarter.
Balance Sheet
As of Apr 30, 2021, Agilent’s cash and cash equivalents were $1.4 billion, up from $1.3 billion as of Jan 31, 2021.
Accounts receivables were $1.07 billion at the fiscal second-quarter end, down from $1.09 billion at the fiscal first-quarter end.
Further, total debt (short + long term) was $2.9 billion for the reported quarter compared with $2.5 billion in the prior quarter.
Outlook
For the fiscal third quarter, the company expects revenues of $1.51-$1.54 billion. The Zacks Consensus Estimate for revenues stands at $1.40 billion.
Non-GAAP earnings per share are expected to be 97-99 cents. The Zacks Consensus Estimate for earnings is pegged at 90 cents per share.
For fiscal 2021, Agilent raised its revenue guidance from $5.825-$5.900 billion to $6.15-$6.21 billion. The company expects the strong momentum across its business to continue. TheZacks Consensus Estimate for full-year revenues is pegged at $5.89 billion.
Also, management revised the non-GAAP earnings guidance upward from $3.80-$3.90 per share to $4.09-$4.14 per share.The Zacks Consensus Estimate for earnings is pegged at $3.87 per share.
Zacks Rank & Stocks to Consider
Currently, Agilent carries a Zacks Rank #3 (Hold).
Long-term earnings growth rates for MACOM Technology, Microchip Technology and Texas Instruments are currently projected at 37%, 15.33% and 9.33%, respectively.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
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Agilent (A) Q2 Earnings & Revenues Beat Estimates, Rise Y/Y
Agilent Technologies (A - Free Report) reported second-quarter fiscal 2021 earnings of 97 cents per share, beating the Zacks Consensus Estimate by 18.3%. Further, the bottom line improved 37% year over year but declined 8.5% sequentially.
Revenues of $1.52 billion surpassed the Zacks Consensus Estimate of $1.39 billion. Further, the figure was up 23% on a reported basis and 19% on a core basis from the year-ago quarter. However, it was down 1.5% from the previous quarter.
The year-over-year revenue improvement was driven by strong growth across all regions served and end-markets. Also, solid momentum across all the operating segments contributed well.
In terms of major markets, Analytical Laboratory and Dx& Clinical accounted for 85% and 15% of total revenues, up 21% and 13% on a core basis from the prior-year quarter, respectively.
Agilent Technologies, Inc. Price, Consensus and EPS Surprise
Agilent Technologies, Inc. price-consensus-eps-surprise-chart | Agilent Technologies, Inc. Quote
Segmental Top-Line Details
Agilent has three reporting segments — Life Sciences & Applied Markets Group (“LSAG”), Agilent Cross Lab Group (“ACG”), and Diagnostics and Genomics Group (“DGG”).
LSAG: The segment accounted for $674 million or 44% of its total revenues, up 28% year over year. This was driven by a strong environment across all the end markets, especially the pharma market. Also, strength in Cell Analysis, Liquid Chromatography and Mass Spectrometry platforms aided the results.
ACG: Revenues from the segment were $536 million, accounting for 35% of total revenues. Also, the top line improved 19% year over year, driven by the solid execution of cross-lab strategy. Also, strengthening momentum in China remained positive.
DGG: Revenues increased 20% year over year to $315 million, accounting for the remaining 21% of total revenues. The topline was driven by solid demand forgenomics instrumentation and consumables.Also, continued strong NASD ramp alongwith recovery in cancer diagnostics drove the results.
Operating Results
For the fiscal second quarter, gross margin in the LSAG segment expanded 130 basis points (bps) on a year-over-year basis to 59.4%.
DGG gross margin contracted 170 bps on a year-over-year basis to 53.4%. Also, ACG gross margin contracted 90 bps to 51.6%.
Research & development costs were $109 million, down 44.7% year over year, while selling, general & administrative expenses were $420 million, up 17.3% year over year.
Operating margin for the fiscal second quarter was 18.9%, which jumped significantly from 8.2%in the year-ago quarter.
Segment-wise, the operating margin for LSAG expanded 420 bps year over year to 22.9%. The DGG segment’s operating margin expanded 30 bps on a year-over-year basis to 21.9%. ACG operating margin was 26.3%, which contracted90 bps from the year-ago quarter.
Balance Sheet
As of Apr 30, 2021, Agilent’s cash and cash equivalents were $1.4 billion, up from $1.3 billion as of Jan 31, 2021.
Accounts receivables were $1.07 billion at the fiscal second-quarter end, down from $1.09 billion at the fiscal first-quarter end.
Further, total debt (short + long term) was $2.9 billion for the reported quarter compared with $2.5 billion in the prior quarter.
Outlook
For the fiscal third quarter, the company expects revenues of $1.51-$1.54 billion. The Zacks Consensus Estimate for revenues stands at $1.40 billion.
Non-GAAP earnings per share are expected to be 97-99 cents. The Zacks Consensus Estimate for earnings is pegged at 90 cents per share.
For fiscal 2021, Agilent raised its revenue guidance from $5.825-$5.900 billion to $6.15-$6.21 billion. The company expects the strong momentum across its business to continue. TheZacks Consensus Estimate for full-year revenues is pegged at $5.89 billion.
Also, management revised the non-GAAP earnings guidance upward from $3.80-$3.90 per share to $4.09-$4.14 per share.The Zacks Consensus Estimate for earnings is pegged at $3.87 per share.
Zacks Rank & Stocks to Consider
Currently, Agilent carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are MACOM Technology Solutions Holdings, Inc. (MTSI - Free Report) , Microchip Technology Incorporated (MCHP - Free Report) and Texas Instruments Incorporated (TXN - Free Report) . All companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks#1 Rank (Strong Buy) stocks here.
Long-term earnings growth rates for MACOM Technology, Microchip Technology and Texas Instruments are currently projected at 37%, 15.33% and 9.33%, respectively.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>