) is set to announce its second-quarter 2013 results on May 14.
Let's see how things are shaping up for this announcement.
Growth Factors This Past Quarter
Agilent posted moderate results due to a softness in the
spending environment caused by lingering macroeconomic issues.
The industrial/semi, communications, academic/government and
forensics/environmental end markets were particularly weak.
However, management is positive about the fact that its
diversification process into segments with higher growth
potential and introduction of new products (with higher margins),
which along with those acquired from Dako and Varian, continue to
improve its growth prospects.
Agilent's focus has shifted to life sciences, genomics,
diagnostics and wireless test markets, where it has made a few
important acquisitions. The company already enjoys a strong
position in its markets and its attempt to strengthen its
position in segments with better growth potential may boost its
revenue in the future.
Our proven model does not conclusively show that Agilent is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive Zacks Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here, as you will see below.
The Most Accurate estimate stands at 65 cents while the Zacks
Consensus Estimate is at 67 cents. That is a difference of
Zacks Rank #3 (Hold):
Agilent's Zacks Rank #3 (Hold) lowers the predictive power of ESP
because the Zacks Rank #3 when combined with a negative ESP makes
surprise prediction difficult. We caution against stocks with
Zacks Rank #4 and #5 (Sell rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Other Stocks to Consider
) has an Earnings ESP of +3.03% and a Zacks Rank #2 (Buy).
International Game Technology
) has an Earnings ESP of +3.23% and a Zacks Rank #2 (Buy).
) has an Earnings ESP of +2.38% and a Zacks Rank #3 (Hold).
AGILENT TECH (A): Free Stock Analysis Report
HASBRO INC (HAS): Free Stock Analysis Report
INTL GAME TECH (IGT): Free Stock Analysis
WEB.COM GROUP (WWWW): Free Stock Analysis
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