Will Agilent Technologies (A) Beat Earnings Estimates? - Analyst Blog

Agilent Technologies Inc. ( A ) 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.

Earnings Whispers?

Our proven model does not conclusively show that Agilent will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Zacks ESP : Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 74 cents. Therefore, the ESP for the stock is 0.00%.

Zacks Rank : 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. ( MYGN ), with Earnings ESP of +4.35% and a Zacks Rank #1 (Strong Buy).

Perry Ellis International Inc. ( PERY ), with Earnings ESP of +7.69% and a Zacks Rank #1.

Pinnacle Foods Inc. ( PF ), with Earnings ESP of +3.03% and a Zacks Rank #2.

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AGILENT TECH (A): Free Stock Analysis Report

MYRIAD GENETICS (MYGN): Free Stock Analysis Report

PERRY ELLIS INT (PERY): Free Stock Analysis Report

PINNACLE FOODS (PF): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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