Agilent Technologies Inc.
) is set to report fiscal third-quarter 2014 results on Aug 14.
Last quarter, it posted in-line results. Let's see how things are
shaping up for this announcement.
Growth Factors this Past Quarter
Agilent delivered modest fiscal second quarter 2014 results with
the bottom line matching the Zacks Consensus Estimate but the top
line missing the same. Its results in the reported quarter were
aided by cost streamlining strategies and better product mix.
The company continues to perform well in the Life Sciences and
Chemical Analysis segments. Moreover, its decision to divest the
underperforming Electronics Measurement (EM) segment makes perfect
sense under the situation.
The company's broad portfolio, increased focus on segments with
higher growth potential, introduction of new high-margin products
along with those acquired from Dako and Varian will help the
company post improved margins in the upcoming quarter.
For the third quarter, Agilent expects revenues of $1.74 to
$1.76 billion, with core revenues (excluding currency and M&A)
expected to grow 5%. Earnings are expected in the range of 72 to 74
cents a share.
Our proven model does not conclusively show that Agilent will beat
earnings this quarter. That is because a stock needs to have both a
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
: Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 74 cents. Therefore, the ESP for the stock is 0.00%.
: Agilent holds a Zacks Rank #2 (Buy) which when combined with a
0.00% ESP makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #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
You can consider other stocks with a positive Earnings ESP and
Zacks Rank #1, 2 or 3 such as:
Myriad Genetics Inc. (
), with Earnings ESP of +4.35% and a Zacks Rank #1 (Strong Buy).
Perry Ellis International Inc. (
), with Earnings ESP of +7.69% and a Zacks Rank #1.
Pinnacle Foods Inc. (
), with Earnings ESP of +3.03% and a Zacks Rank #2.
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AGILENT TECH (A): Free Stock Analysis Report
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