Agilent (A) Up 1.3% Since Last Earnings Report: Can It Continue?

Core Insights - Agilent Technologies reported fourth-quarter fiscal 2024 earnings of $1.46 per share, exceeding the Zacks Consensus Estimate by 3.6% and reflecting a year-over-year increase of 5.8% [1][3] - The company faced challenges in the Food, Academic and Government, and Environmental and Forensics markets during the reported quarter [2] - Revenue for the quarter was $1.70 billion, surpassing the Zacks Consensus Estimate by 1.67%, with a reported increase of 0.8% year-over-year and a core basis decrease of 0.3% [18] Revenue Segments - Agilent operates through three reporting segments: Life Sciences & Applied Markets Group (LSAG), Agilent Cross Lab Group (ACG), and Diagnostics and Genomics Group (DGG) [4] - LSAG generated $833 million, accounting for 49% of total revenues, marking a 1% decline year-over-year [20] - ACG revenues were $426 million, representing 25% of total revenues, with a 5% growth year-over-year [5] - DGG revenues decreased 1% year-over-year to $442 million, accounting for 26% of total revenues [21] Financial Performance - Research and development (R&D) expenses on a non-GAAP basis were $109 million, down 6% from the prior year [7] - Selling, general and administrative (SG&A) expenses rose slightly to $362 million, a 1.4% increase from the prior year [23] - The non-GAAP operating margin for the fourth quarter was 27.4%, indicating a year-over-year contraction of 40 basis points [24] Cash Flow and Balance Sheet - As of October 31, 2024, cash and cash equivalents were $1.33 billion, down from $1.78 billion as of July 31, 2024 [10] - Long-term debt increased to $3.35 billion from $2.14 billion in the prior quarter [11] - Cash flow from operating activities was $481 million in the fourth quarter, compared to $452 million in the previous quarter [26] Guidance and Outlook - For Q1 fiscal 2025, non-GAAP earnings per share are expected to be between $1.25 and $1.28 [12] - Fiscal 2025 non-GAAP earnings per share guidance was revised to $5.54-$5.61 from $5.21-$5.25 [13] - Revenue guidance for fiscal 2025 was updated from $6.45-$6.50 billion to $6.79-$6.87 billion, implying a reported increase of 4.3-5.5% [28]