Agilent to Report Q1 Earnings: What's in the Cards for the Stock?

Core Viewpoint - Agilent Technologies is expected to report first-quarter fiscal 2025 results on February 26, with anticipated revenues and earnings reflecting slight declines compared to the previous year [1][2][3]. Revenue Expectations - The company forecasts revenues between $1.65 billion and$1.68 billion, indicating a decline of 0.5% to 1.3% on a reported basis and 2.0% to 0.2% on a core basis year-over-year [2]. - The Zacks Consensus Estimate for revenues stands at $1.67 billion, suggesting a year-over-year increase of 0.56$1.25 to $1.28, with the consensus mark at$1.27, reflecting a 1.55% decrease from the previous year's reported figure [3]. - Agilent has surpassed the Zacks Consensus Estimate in the last four quarters, averaging a 4.57% beat [3]. Factors Influencing Performance - The timing of the Lunar New Year is expected to have impacted performance by two percentage points [4]. - Free cash flow is anticipated to have declined marginally due to increased capital expenditures related to NASD expansion, particularly for Trains C and D [5]. - Profitability is expected to be pressured by lower revenues and higher expenses, partly driven by merit resets [6]. Market Conditions - Agilent faces challenges from a slowing global economy and geopolitical uncertainties, particularly in China, which may have affected demand and operational efficiency [7]. - Despite these challenges, the fourth-quarter book-to-bill ratio exceeded 1, indicating a strong order pipeline and sustained demand [7]. Strategic Developments - The acquisition of BIOVECTRA is expected to enhance Agilent's Contract Development and Manufacturing Organization business, particularly in oligonucleotides and CRISPR therapeutics, potentially driving revenue growth [8]. Earnings Expectations Model - According to the Zacks model, Agilent has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell), indicating lower odds of an earnings beat [9].