We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
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.
Agilent's underperformance is largely attributed to struggles in key end markets, including Pharmaceutical, Food, Academic and Government, and Environmental and Forensics. These domains saw significant downturns in the fourth quarter of fiscal 2024, raising concerns about the company's forecast and impacting its overall prospects.
Pharmaceutical remains Agilent's largest revenue contributor, accounting for 35% of total revenues, though it has decreased 1% year over year. Meanwhile, the Food, and Environmental and Forensics segments experienced more pronounced year-over-year declines of 3% and 6%, respectively.
A’s Subdued Outlook Affects Estimate Revisions
For the first quarter of fiscal 2025, the company expects revenues between $1.65 billion and $1.68 billion, indicating a reported decline of 0.5% to growth of 1.3%.
The Zacks Consensus Estimate for first-quarter fiscal 2025 revenues is pegged at $1.67 billion, suggesting a year-over-year increase of 0.56%.
Non-GAAP fiscal first-quarter earnings are expected to be $1.25-$1.28 per share. The Zacks Consensus Estimate stands at $1.27 per share, implying a 1.55% year-over-year decline and an 8% decrease over the past 60 days.
For fiscal 2025, A revised its revenue guidance to $6.79-$6.87 billion.
The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $6.83 billion. This suggests moderate growth of 4.94% from the year-ago quarter’s reported figure.
Fiscal 2025 non-GAAP earnings are expected to be $5.54-$5.61 per share. The consensus mark for the same is pegged at $5.56, down 2.8% over the past 60 days, indicating a 5.10% increase from fiscal 2024 earnings.
Slowing Segmental Growth, Macroeconomic Hurdles Hit Agilent
The Life Sciences and Applied Markets Group segment, which accounts for half of the company’s total revenues, experienced a year-over-year decline of 1% in the fourth quarter of fiscal 2024. This decrease was mainly driven by slower sales of instruments, as customers became more cautious and reduced spending on new equipment.
The decline in the Diagnostics and Genomics Group segment is raising concerns, with a 1% drop on a reported basis and a 3% decline on a core basis for the fourth quarter of fiscal 2024. This downturn was mainly driven by expected softness in cell analysis instruments and NASD.
The combination of macroeconomic pressures and regulatory challenges in China has significantly influenced Agilent's financial performance and strategic decisions. The ongoing trade dispute between the United States and China remains a key concern, potentially affecting the company’s operations and market dynamics in the region. These factors contribute to uncertainties around the company's top-line growth since China is its second-largest customer market.
Zacks Rank & Stocks to Consider
A currently carries a Zacks Rank #4 (Sell), which implies investors should stay away from the stock for the time being.
Image: Bigstock
Agilent Rises 11% in a Year: Should You Buy, Sell or Hold the Stock?
Agilent Technologies (A - Free Report) shares have returned 11% in the past year, lagging the broader Zacks Computer and Technology sector’s 29.8% rise, and the Zacks Electronics - Testing Equipment industry’s 12% growth.
Agilent's underperformance is largely attributed to struggles in key end markets, including Pharmaceutical, Food, Academic and Government, and Environmental and Forensics. These domains saw significant downturns in the fourth quarter of fiscal 2024, raising concerns about the company's forecast and impacting its overall prospects.
Pharmaceutical remains Agilent's largest revenue contributor, accounting for 35% of total revenues, though it has decreased 1% year over year. Meanwhile, the Food, and Environmental and Forensics segments experienced more pronounced year-over-year declines of 3% and 6%, respectively.
A’s Subdued Outlook Affects Estimate Revisions
For the first quarter of fiscal 2025, the company expects revenues between $1.65 billion and $1.68 billion, indicating a reported decline of 0.5% to growth of 1.3%.
Agilent Technologies, Inc. Price and Consensus
Agilent Technologies, Inc. price-consensus-chart | Agilent Technologies, Inc. Quote
The Zacks Consensus Estimate for first-quarter fiscal 2025 revenues is pegged at $1.67 billion, suggesting a year-over-year increase of 0.56%.
Non-GAAP fiscal first-quarter earnings are expected to be $1.25-$1.28 per share. The Zacks Consensus Estimate stands at $1.27 per share, implying a 1.55% year-over-year decline and an 8% decrease over the past 60 days.
For fiscal 2025, A revised its revenue guidance to $6.79-$6.87 billion.
The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $6.83 billion. This suggests moderate growth of 4.94% from the year-ago quarter’s reported figure.
Fiscal 2025 non-GAAP earnings are expected to be $5.54-$5.61 per share. The consensus mark for the same is pegged at $5.56, down 2.8% over the past 60 days, indicating a 5.10% increase from fiscal 2024 earnings.
Slowing Segmental Growth, Macroeconomic Hurdles Hit Agilent
The Life Sciences and Applied Markets Group segment, which accounts for half of the company’s total revenues, experienced a year-over-year decline of 1% in the fourth quarter of fiscal 2024. This decrease was mainly driven by slower sales of instruments, as customers became more cautious and reduced spending on new equipment.
The decline in the Diagnostics and Genomics Group segment is raising concerns, with a 1% drop on a reported basis and a 3% decline on a core basis for the fourth quarter of fiscal 2024. This downturn was mainly driven by expected softness in cell analysis instruments and NASD.
The combination of macroeconomic pressures and regulatory challenges in China has significantly influenced Agilent's financial performance and strategic decisions. The ongoing trade dispute between the United States and China remains a key concern, potentially affecting the company’s operations and market dynamics in the region. These factors contribute to uncertainties around the company's top-line growth since China is its second-largest customer market.
Zacks Rank & Stocks to Consider
A currently carries a Zacks Rank #4 (Sell), which implies investors should stay away from the stock for the time being.
Okta (OKTA - Free Report) , Docusign (DOCU - Free Report) and BWX Technologies (BWXT - Free Report) are some better-ranked stocks in the broader tech sector. Each of these three companies currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rates for OKTA, DOCU and BWXT are pegged at 23.75%, 9.42% and 9.35%, respectively.