) is set to report first-quarter fiscal 2014 results on Feb 13.
Last quarter, it posted 6.6% positive surprise. Let's see how
things are shaping up for this announcement.
Growth Factors This Past Quarter
Agilent's fiscal fourth-quarter earnings per share of 81 cents
beat the Zacks Consensus Estimate by 5 cents driven by good
expense control and stronger mix. However, revenues of $1.72
billion missed the Zacks consensus mark by 13.0%. Unfavorable
currency changes accounted for a 1.5% decline in revenues
although the impact of acquisitions was immaterial.
The Diagnostics segment was a positive for overall gross
margin, since the new segment generates significantly higher
gross margins than the legacy Agilent business. Also, the
company's efficient cost management contributed to margin
expansion in the last quarter.
For the first quarter, Agilent expects revenues in the range
of $1.68 to $1.70 billion, with core revenues (excluding currency
and M&A) expected to grow 2%. The expected earnings are
expected in the range of 65 cents-67 cents a share.
Our proven model does not conclusively show that Agilent will
beat earnings this quarter. This is because a stock needs to have
both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. This is not the
case here as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 66 cents. Hence, the difference is 0.00%.
Agilenthas a Zacks Rank #3 (Hold) which, when combined with a
0.00% ESP, makes surprise prediction difficult.
We caution against stocks with a Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat:
Melco Crown Entertainment Ltd.
), with Earnings ESP of +7.50% and a Zacks Rank #1 (Strong
Ship Finance International Ltd.
), with Earnings ESP of +52.63% and a Zacks Rank #1.
Salix Pharmaceuticals Ltd.
), with Earnings ESP of +18.75% and a Zacks Rank #1.
AGILENT TECH (A): Free Stock Analysis Report
MELCO CROWN ENT (MPEL): Free Stock Analysis
SHIP FIN INTL (SFL): Free Stock Analysis
SALIX PHARM-LTD (SLXP): Free Stock Analysis
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