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Agilent (A) Boosts LCMS Portfolio With New Systems Launch

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Agilent Technologies (A - Free Report) expanded its liquid chromatography mass spectrometry (LCMS) offerings with the launch of the 6495 Triple Quadrupole LC/MS (LC/TQ) System and the Revident Quadrupole Time-of-Flight LC/MS (LC/QTOF) System.

Notably, 6495 LC/TQ is designed to take care of the critical transition between the discovery phase of research and the translational phase to generate meaningful scientific insights on the back of its intelligence features.

Thus, Agilent is likely to gain momentum among the targeted analysis applications that require the highest analytical sensitivity.

Meanwhile, Revident LC/Q-TOF features instrument intelligence for maximized operation time and productivity and a novel detection system that boosts spectral purity.

In addition to the new LCMS systems, Agilent unveiled MassHunter Explorer Profiling software and the new ChemVista library manager software, both of which are integrated with Revident LC/Q-TOF for delivering meaningful scientific insights.

With Revident LC/Q-TO, the company is set to gain traction across food safety and environmental analysis and applications in other small molecule markets.

LSAG Segment in Focus

The latest move bodes well for the company’s growing efforts toward bolstering its Life Sciences & Applied Markets Group (LSAG) segment, which contributes the most to total revenues.

In second-quarter fiscal 2023, the segment generated $968 million in revenues, which accounted for 56% of the total revenues. The figure was up 8% on a reported basis and 10% on a core basis from the prior-year fiscal quarter’s levels.

We believe the company’s strong focus on bolstering the LSAG segment is expected to contribute well to its overall performance, which in turn is likely to aid it in winning investors’ confidence in the days ahead.

For fiscal 2023, Agilent expects revenues between $6.93 billion and $7.03 billion, implying growth of 1.2-2.7% on a reported basis and 3-4.5% on a core basis from the respective fiscal 2022 figures. The Zacks Consensus Estimate for Agilent's 2023 revenues is pegged at $6.99 billion, indicating growth of 2.1% from 2022.

Coming to the price performance, Agilent has lost 21.4% in the year-to-date period against the industry’s growth of 2.3%.

Expanding Portfolio

Apart from the latest LCMS systems, the company rolled out the Cary 3500 Flexible UV-Vis System to strengthen its OpenLab software suite. The new spectrophotometer is ideal for analyzing liquid samples and characterizing solid samples as it features a large sample compartment with a small footprint.

Further, the company announced the acquisition of e-Msion, which is known for an innovative electron capture dissociation (ECD) technology called the ExD cell. As part of the deal, the ExD cell will be integrated into Agilent’s advanced workflows, instruments and analytical solutions, which in turn will drive Agilent’s momentum across laboratories as well as among biological researchers.

Also, Agilent announced the acquisition of Avida Biomed, which develops high-performance target enrichment workflows to aid clinical researchers using next-generation sequencing (NGS) approaches in studying cancer.

The solutions of Avida Biomed highly complement Agilent’s SureSelect portfolio and NGS offerings. It has added strength to A’s portfolio of clinical research solutions. The acquisition is expected to help Agilent strengthen its Diagnostics and Genomics Group (DGG) segment.

We believe that the growing portfolio offerings will continue to help Agilent strengthen its presence across various end markets.

Zacks Rank & Stocks to Consider

Currently, Agilent Technologies carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Palo Alto Networks (PANW - Free Report) , NVIDIA (NVDA - Free Report) and AMETEK (AME - Free Report) . While Palo Alto Networks and NVIDIA sport a Zacks Rank #1 (Strong Buy), AME carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Palo Alto Networks shares have gained 61.9% in the year-to-date period. The long-term earnings growth rate for PANW is currently projected at 31.5%.

NVIDIA shares have gained 166.1% in the year-to-date period. Its long-term earnings growth rate is presently projected at 23.02%.

AMTEK shares have gained 7% in the year-to-date period. The long-term earnings growth rate for AME is currently projected at 8.95%.

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