) to beat expectations when it reports third quarter 2013 results
on Aug 14.
Why a Likely Positive Surprise?
Our proven model shows that Agilent is likely to beat earnings
because it has the right combination of two key ingredients.
Positive Zacks ESP
: The expected surprise prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
), which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, is +1.61%. This is
very meaningful and a leading indicator of a likely positive
earnings surprise for shares.
Zacks Rank #3 (Hold):
Note that stocks with a Zacks Rank #1, #2 and #3 have a
significantly higher chance of beating earnings estimates. The
sell-rated stocks (Zacks Rank #4 and #5) should never be
considered going into an earnings announcement.
The combination of Agilent's Zacks Rank #3 (Hold) and an ESP
+1.61% makes us reasonably confident in looking for a positive
earnings beat on Aug 14.
What is Driving the Better than Expected Earnings?
Agilent's new products, its strong position in emerging
markets, solid execution, and cost control measures are expected
to lead to positive earnings surprise in the upcoming
Recently, the company announced a restructuring initiative
that would, after completion, result in a reduction of its
workforce by 450 and generate cost savings of around $50 million
a year. Additionally, Agilent's broader portfolio and
diversification into segments with higher growth potential should
help drive growth in the near future.The positive trend is seen
in the trailing four-quarter average surprise of 2.29%.
Other Stocks to Consider
Agilent is not the only firm looking up this earnings
season.You could, therefore, consider other stocks like:
), with an ESP of +42.86% and a Zacks Rank #1 (Strong Buy)
), with an Earnings ESP of +28.57% and a Zacks Rank #2 (Buy)
), with an Earnings ESP of +5.26% and a Zacks Rank #3 (Hold)
AGILENT TECH (A): Free Stock Analysis Report
INVENSENSE INC (INVN): Free Stock Analysis
MICRON TECH (MU): Free Stock Analysis Report
RAMBUS INC (RMBS): Free Stock Analysis Report
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