Agilent Technologies, Inc. (A) delivered a strong performance in the third quarter, exceeding analysts’ expectations and signaling a potential shift in market conditions. The company reported a revenue of $1.58 billion, a 5.6% decline year-over-year, yet surpassing the consensus estimate of $1.56 billion. This performance was driven primarily by its Life Sciences and Applied Markets Group (LSAG) segment, which generated $782 million in revenue despite a decline of 8% year-over-year. The operating margin for this segment reached 28.4%.
The company’s adjusted earnings per share (EPS) came in at $1.32, exceeding the street view of $1.26. Looking ahead, Agilent expects fourth-quarter revenue to be between $1.641 billion and $1.691 billion, surpassing the current estimate of $1.67 billion. The company also anticipates adjusted EPS to range from $1.38 to $1.42, compared to the street view of $1.44.
Agilent’s optimistic outlook extends to its full-year forecast. The company revised its revenue outlook for fiscal year 2024 to a range of $6.45 billion to $6.5 billion, slightly higher than its previous forecast of $6.42 billion to $6.5 billion. This revised outlook also surpasses the current consensus estimate of $6.46 billion. Agilent also raised its adjusted EPS projection for the year to a range of $5.21 to $5.25, up from the previous range of $5.15 to $5.25. This revised estimate is also higher than the current consensus estimate of $5.20.
Agilent’s President and CEO, Padraig McDonnell, expressed confidence in the company’s performance, stating, “While market conditions continued to be challenged during the quarter, we saw steady signs of improvement as anticipated. We continue to make investments in our most promising growth opportunities.”
Following the announcement of these impressive results, Agilent shares saw a 0.8% increase on Thursday, reaching $141.17. The positive news has also encouraged several analysts to revise their price targets on the stock. B of A Securities analyst Derik De Bruin maintained his Neutral rating on Agilent but raised the price target from $140 to $147. Evercore ISI Group analyst Vijay Kumar also maintained his In-Line rating, while increasing the price target from $130 to $135. TD Cowen analyst Dan Brennan maintained a Buy rating and boosted the price target from $153 to $160. Lastly, Citigroup analyst Patrick Donnelly kept his Buy rating and raised the price target from $150 to $165.
Overall, Agilent’s strong third-quarter performance and optimistic outlook for the future have instilled confidence in both the company’s leadership and the market, as evidenced by the positive response from analysts and the stock’s upward movement.
