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Will New Technologies Help Agilent (A) Beat on Q4 Earnings?
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Agilent Technologies (A - Free Report) is set to report fiscal fourth-quarter 2017 results on Nov 20. Last quarter, it delivered a positive earnings surprise of 13.46%.
The company’s surprise history has been pretty impressive. It beat estimates in each of the trailing four quarters, with an average positive earnings surprise of 13.98%.
Notably, on a year-to-date basis, Agilent’s shares have returned 47.8%, underperforming the industry’s gain of 49.6%.
Let’s see how things are shaping up for this announcement.
Strength in ACG Segment to Drive Revenues
In the last reported fiscal third quarter, the Agilent Cross Lab Group (ACG) segment contributed 35% of total third-quarter revenues, reflecting an increase of 7% year over year. The figure is expected to further increase in the upcoming quarter, driven by strength in services and consumables across all geographical regions. The Zacks Consensus Estimate for the upcoming quarter is pegged at $392 million.
Strength in DGG & LSAG a Big Positive
In the last quarter, revenues from Diagnostics and Genomics Group (DGG) came in at $197 million. The segment was up 9% year over year, driven by strength in pharma, diagnostic and clinical end-markets. All businesses under this group (Dako, Genomics and Nucleic Acid Solutions) performed well. The segment is expected to perform well in the upcoming quarter too. The Zacks Consensus Estimate for the fiscal fourth quarter is pegged at $207 million.
Also, the Life Sciences & Applied Markets Group (LSAG) segment is expected to perform well in the upcoming quarter driven by strong performances in chemical and energy, pharma and environmental markets. The Zacks Consensus Estimate for the fiscal fourth quarter is pegged at $569 million.
Other Growth Drivers
Agilent Technologies is a broad-based OEM of test and measurement equipment. The company has shifted its focus to life sciences, genomics, diagnostics and wireless test markets, in which it has made a few important acquisitions and alliances.
Agilent’s broad-based portfolio and increased focus on segments offer higher growth potential. The company’s decision to divest/wind up underperforming businesses has enhanced its focus on the new Agilent, while enabling expansion of a solid recurring revenue base and diversification of geographic and industrial operations for growth. Also, the company’s focus on aligning investments toward more attractive growth avenues and innovative product launches is a positive.
The company’s solid market position, acquisition strategy and increased focus on segments with growth potential remain major growth drivers.
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. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if these have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Agilent Technologies has a Zacks Rank #3 and an Earnings ESP of +0.71%, a combination that suggests that the company is likely to beat estimates this time around.
Texas Instruments Incorporated (TXN - Free Report) with an Earnings ESP of +0.42% and a Zacks Rank #2.
Adobe Systems Incorporated (ADBE - Free Report) with an Earnings ESP of +0.10% and a Zacks Rank #1.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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Will New Technologies Help Agilent (A) Beat on Q4 Earnings?
Agilent Technologies (A - Free Report) is set to report fiscal fourth-quarter 2017 results on Nov 20. Last quarter, it delivered a positive earnings surprise of 13.46%.
The company’s surprise history has been pretty impressive. It beat estimates in each of the trailing four quarters, with an average positive earnings surprise of 13.98%.
Notably, on a year-to-date basis, Agilent’s shares have returned 47.8%, underperforming the industry’s gain of 49.6%.
Let’s see how things are shaping up for this announcement.
Strength in ACG Segment to Drive Revenues
In the last reported fiscal third quarter, the Agilent Cross Lab Group (ACG) segment contributed 35% of total third-quarter revenues, reflecting an increase of 7% year over year. The figure is expected to further increase in the upcoming quarter, driven by strength in services and consumables across all geographical regions. The Zacks Consensus Estimate for the upcoming quarter is pegged at $392 million.
Strength in DGG & LSAG a Big Positive
In the last quarter, revenues from Diagnostics and Genomics Group (DGG) came in at $197 million. The segment was up 9% year over year, driven by strength in pharma, diagnostic and clinical end-markets. All businesses under this group (Dako, Genomics and Nucleic Acid Solutions) performed well. The segment is expected to perform well in the upcoming quarter too. The Zacks Consensus Estimate for the fiscal fourth quarter is pegged at $207 million.
Also, the Life Sciences & Applied Markets Group (LSAG) segment is expected to perform well in the upcoming quarter driven by strong performances in chemical and energy, pharma and environmental markets. The Zacks Consensus Estimate for the fiscal fourth quarter is pegged at $569 million.
Other Growth Drivers
Agilent Technologies is a broad-based OEM of test and measurement equipment. The company has shifted its focus to life sciences, genomics, diagnostics and wireless test markets, in which it has made a few important acquisitions and alliances.
Agilent’s broad-based portfolio and increased focus on segments offer higher growth potential. The company’s decision to divest/wind up underperforming businesses has enhanced its focus on the new Agilent, while enabling expansion of a solid recurring revenue base and diversification of geographic and industrial operations for growth. Also, the company’s focus on aligning investments toward more attractive growth avenues and innovative product launches is a positive.
The company’s solid market position, acquisition strategy and increased focus on segments with growth potential remain major growth drivers.
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. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if these have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Agilent Technologies has a Zacks Rank #3 and an Earnings ESP of +0.71%, a combination that suggests that the company is likely to beat estimates this time around.
Agilent Technologies, Inc. Price and EPS Surprise
Agilent Technologies, Inc. Price and EPS Surprise | Agilent Technologies, Inc. Quote
Other Stocks to Consider
We see a likely earnings beat for each of the following companies.
NVIDIA Corp. (NVDA - Free Report) , with an Earnings ESP of +1.18% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Texas Instruments Incorporated (TXN - Free Report) with an Earnings ESP of +0.42% and a Zacks Rank #2.
Adobe Systems Incorporated (ADBE - Free Report) with an Earnings ESP of +0.10% and a Zacks Rank #1.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>