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Agilent Expands LSAG Segment: How Should You Approach the Stock?
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Agilent Technologies (A - Free Report) boosts its LSAG segment with the launch of the Agilent InfinityLab Liquid Chromatography (LC) Series portfolio, comprising the 1290 Infinity III LC, 1260 Infinity III Prime LC and 1260 Infinity III LC systems.
The new Agilent InfinityLab Assist Technology is being used for the first time in these High Performance Liquid Chromatography systems, providing enhanced system assistance.
These systems have a significant impact on task automation, connectivity, predictive feedback and error reduction.
Agilent InfinityLab LC Series’ built-in sample tracking feature, which uses barcoding and camera technologies, ensures that sample mix-ups are avoided, providing users with maximum efficiency.
LSAG Portfolio Expansion to Aid Agilent’s Prospects
Agilent’s latest product offerings in the LSAG segment are expected to drive top-line growth.
A’s introduction of an advanced gas chromatography/mass spectrometry (GC/MS) column technology product, namely J&W 5Q GC/MS Columns, to expand its LSAG segment is a noteworthy development.
The new GC/MS columns are designed to expedite GC/MS workflows and boost system performance in challenging conditions.
A recently launched Biopharma CDx Services Lab (BCSL) to facilitate precision medicine. The BCSL and Agilent’s assay development model will support drug development from early clinical studies through regulatory approval with efficient, flexible and streamlined diagnostic development.
Strategic Acquisitions to Boost A’s Prospects
Agilent recently inked an agreement with Sangon Biotech to leverage its comprehensive product portfolio and full workflow solutions to strengthen Sangon’s capacity for testing and analysis to serve its customers better.
The recent acquisition of Canada’s BIOVECTRA is a major development by A. With this transaction, Agilent can widen its portfolio of contract development and manufacturing organization services, add rapidly growing modalities, and bring world-class capabilities to support gene editing.
Agilent’s acquisition of California-based Sigsense, a start-up that uses artificial intelligence and power monitoring to help customers optimize their lab operations might be a plus in the near term.
Agilent Suffers From Persistent Headwinds
Despite accretive acquisitions and product innovations, macroeconomic uncertainties, including regulatory concerns in China and slow capital spending by customers are major concerns.
A’s shares have lost 1.6% year to date (YTD), underperforming the broader Zacks Computer and Technology sector’s return of 26.9%. It also underperformed its industry and peers, including Itron (ITRI - Free Report) , Teradyne (TER - Free Report) and Fortive (FTV - Free Report) .
Over the same time frame, shares of Itron, Teradyne and Fortive have gained 36.6%, 16.1% and 4.8%, respectively. The industry appreciated 4.1% YTD.
A’s Q4 and Fiscal 2024 Guidance Not So Bright
For fourth-quarter fiscal 2024, Agilent expects revenues in the range of $1.64-$1.69 billion, down 2.8% to up 0.2% on a reported basis and down 1.9% to up 1.1% on a core basis.
The Zacks Consensus Estimate for fourth-quarter 2024 revenues is pinned at $1.67 billion, suggesting a year-over-year fall of 0.9%.
Non-GAAP fiscal fourth-quarter earnings are expected in the band of $1.38-$1.42 per share. The Zacks Consensus Estimate for earnings is pegged at $1.41 per share, unchanged over the past 30 days, indicating an increase of 2.2% from the year-ago quarter’s reported figure.
For fiscal 2024, Agilent revised its revenue guidance from $6.42-$6.50 billion to $6.45-$6.50 billion, indicating a fall of 5.6-4.9% on a reported basis and 5-4.3% on a core basis from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for fiscal 2024 total revenues is pegged at $6.48 billion, indicating a decline of 5.1% from the year-ago quarter’s reported figure.
The fiscal 2024 non-GAAP earnings per share is expected in the band of $5.15-$5.25 compared with the earlier guidance of $5.21-$5.25. The consensus mark for the same is pegged at $5.24, unchanged over the past 30 days, indicating a year-over-year decline of 3.7%.
A’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.4%.
Image: Bigstock
Agilent Expands LSAG Segment: How Should You Approach the Stock?
Agilent Technologies (A - Free Report) boosts its LSAG segment with the launch of the Agilent InfinityLab Liquid Chromatography (LC) Series portfolio, comprising the 1290 Infinity III LC, 1260 Infinity III Prime LC and 1260 Infinity III LC systems.
The new Agilent InfinityLab Assist Technology is being used for the first time in these High Performance Liquid Chromatography systems, providing enhanced system assistance.
These systems have a significant impact on task automation, connectivity, predictive feedback and error reduction.
Agilent InfinityLab LC Series’ built-in sample tracking feature, which uses barcoding and camera technologies, ensures that sample mix-ups are avoided, providing users with maximum efficiency.
Agilent Technologies, Inc. Price and Consensus
Agilent Technologies, Inc. price-consensus-chart | Agilent Technologies, Inc. Quote
LSAG Portfolio Expansion to Aid Agilent’s Prospects
Agilent’s latest product offerings in the LSAG segment are expected to drive top-line growth.
A’s introduction of an advanced gas chromatography/mass spectrometry (GC/MS) column technology product, namely J&W 5Q GC/MS Columns, to expand its LSAG segment is a noteworthy development.
The new GC/MS columns are designed to expedite GC/MS workflows and boost system performance in challenging conditions.
A recently launched Biopharma CDx Services Lab (BCSL) to facilitate precision medicine. The BCSL and Agilent’s assay development model will support drug development from early clinical studies through regulatory approval with efficient, flexible and streamlined diagnostic development.
Strategic Acquisitions to Boost A’s Prospects
Agilent recently inked an agreement with Sangon Biotech to leverage its comprehensive product portfolio and full workflow solutions to strengthen Sangon’s capacity for testing and analysis to serve its customers better.
The recent acquisition of Canada’s BIOVECTRA is a major development by A. With this transaction, Agilent can widen its portfolio of contract development and manufacturing organization services, add rapidly growing modalities, and bring world-class capabilities to support gene editing.
Agilent’s acquisition of California-based Sigsense, a start-up that uses artificial intelligence and power monitoring to help customers optimize their lab operations might be a plus in the near term.
Agilent Suffers From Persistent Headwinds
Despite accretive acquisitions and product innovations, macroeconomic uncertainties, including regulatory concerns in China and slow capital spending by customers are major concerns.
A’s shares have lost 1.6% year to date (YTD), underperforming the broader Zacks Computer and Technology sector’s return of 26.9%. It also underperformed its industry and peers, including Itron (ITRI - Free Report) , Teradyne (TER - Free Report) and Fortive (FTV - Free Report) .
Over the same time frame, shares of Itron, Teradyne and Fortive have gained 36.6%, 16.1% and 4.8%, respectively. The industry appreciated 4.1% YTD.
A’s Q4 and Fiscal 2024 Guidance Not So Bright
For fourth-quarter fiscal 2024, Agilent expects revenues in the range of $1.64-$1.69 billion, down 2.8% to up 0.2% on a reported basis and down 1.9% to up 1.1% on a core basis.
The Zacks Consensus Estimate for fourth-quarter 2024 revenues is pinned at $1.67 billion, suggesting a year-over-year fall of 0.9%.
Non-GAAP fiscal fourth-quarter earnings are expected in the band of $1.38-$1.42 per share. The Zacks Consensus Estimate for earnings is pegged at $1.41 per share, unchanged over the past 30 days, indicating an increase of 2.2% from the year-ago quarter’s reported figure.
For fiscal 2024, Agilent revised its revenue guidance from $6.42-$6.50 billion to $6.45-$6.50 billion, indicating a fall of 5.6-4.9% on a reported basis and 5-4.3% on a core basis from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for fiscal 2024 total revenues is pegged at $6.48 billion, indicating a decline of 5.1% from the year-ago quarter’s reported figure.
The fiscal 2024 non-GAAP earnings per share is expected in the band of $5.15-$5.25 compared with the earlier guidance of $5.21-$5.25. The consensus mark for the same is pegged at $5.24, unchanged over the past 30 days, indicating a year-over-year decline of 3.7%.
A’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.4%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Zacks Rank and Valuation
However, A stock is not so cheap, as the Value Score of D suggests a stretched valuation at this moment.
Agilent stock is trading with a forward 12-month Price/Sales of 5.76X compared with the industry’s 5.21X.
A currently carries a Zacks Rank #3 (Hold) and has a stretched valuation, implying that investors should wait for a better entry point into the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.