The 10-second takeaway
For the quarter ended April 30 (Q2), Agilent Technologies met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share dropped. GAAP earnings per share shrank significantly.
Margins contracted across the board.
Agilent Technologies booked revenue of $1.73 billion. The 13 analysts polled by S&P Capital IQ hoped for net sales of $1.74 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.77. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.67 per share. Non-GAAP EPS of $0.77 for Q2 were 1.3% lower than the prior-year quarter's $0.78 per share. GAAP EPS of $0.48 for Q2 were 33% lower than the prior-year quarter's $0.72 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.4%, 160 basis points worse than the prior-year quarter. Operating margin was 12.3%, 500 basis points worse than the prior-year quarter. Net margin was 9.6%, 510 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.64 billion. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $6.79 billion. The average EPS estimate is $2.80.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 507 members out of 575 rating the stock outperform, and 68 members rating it underperform. Among 132 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 125 give Agilent Technologies a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Agilent Technologies is outperform, with an average price target of $48.47.
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