Agilent Set to Report Q3 Earnings: What's in the Offing?

Agilent Technologies A is set to report its third-quarter fiscal 2024 results on Aug 21.

For the fiscal third quarter, the company expects revenues of $1.535-$1.575 billion, suggesting a decline of 8.2-5.8% on a reported basis and 6.9-4.5% on a core basis from the year-ago quarter's actuals. The Zacks Consensus Estimate for the same is pegged at $1.56 billion, implying a decline of 6.6% from the year-ago quarter's reported figure.

Agilent's non-GAAP earnings per share are expected to be $1.25-$1.28. The Zacks Consensus Estimate for earnings is pegged at $1.25 per share, indicating a fall of 12.6% from the year-ago quarter's reported figure. The estimate has been revised downward by 0.8%

Agilent's earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 4.13%.

Key Factors to Note

The company is expected to have gained from the growing momentum across Agilent Cross Lab Group ("ACG") segment in the fiscal third quarter.

The ACG segment is likely to have benefited from the solid momentum across end markets and various geographic regions. Strength in services attached to new instrument installations and existing instrument base is likely to have contributed well. Growing lab demand, along with solid momentum in the CrossLab team, is anticipated to have contributed well.

The Zacks Consensus Estimate for ACG is pegged at $410 million, implying growth of 3.5% from the year-ago quarter's reported figure.

Agilent's strength in the pathology business, owing to solid clinical demand for Agilent's Cancer Dx platform, is expected to have continued benefiting the Diagnostics and Genomics Group ("DGG") segment's performance in the fiscal third quarter.

However, sluggishness in NGS Chemistries, cell analysis and NASD is likely to have been concerning.

The Zacks Consensus Estimate for DGG is pegged at $405 million, implying growth of 16% from the year-ago quarter's reported figure.

Meanwhile, the weakening momentum in the Life Sciences & Applied Markets Group ("LSAG") segment is expected to have been a major headwind for Agilent. Macroeconomic uncertainties, soft market conditions in China and sluggish capital spending by customers are expected to have negatively impacted the segment in the quarter under review.

The Zacks Consensus Estimate for LSAG is pegged at $755 million, implying a decline of 18.6% from the year-ago quarter's reported figure.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Agilent this time around. According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

Agilent has a Zacks Rank #4 (Sell) and an Earnings ESP of -1.46% at present.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

American Eagle Outfitters AEO has an Earnings ESP of +1.97% and a Zacks Rank of 2 at present.

American Eagle Outfitters is set to report fourth-quarter fiscal 2024 results on Aug 29. The Zacks Consensus Estimate for AEO's earnings is pegged at 38 cents per share, indicating growth of 52% from the year-ago quarter's figure.

Abercrombie & Fitch ANF has an Earnings ESP of +5.40% and a Zacks Rank of 2 at present.

Abercrombie & Fitch is set to report its second-quarter results on Aug 28. The consensus estimate for ANF's earnings is pegged at $2.13 per share, indicating a significant jump of 93.6% from the prior-year quarter's actual.

Affirm AFRM has an Earnings ESP of +19.64% and a Zacks Rank of 2 at present.

Affirm is scheduled to release fourth-quarter fiscal 2024 results on Aug 28. The Zacks Consensus Estimate for AFRM's loss is pegged at 45 cents per share, narrower than the loss of 69 cents per share reported in the prior-year quarter.

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