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Agilent Technologies, Inc. (A), headquartered in Santa Clara, California, provides application focused solutions to the life sciences, diagnostics, and applied chemical markets. Valued at $38.5 billion by market cap, the company offers electronic and bio-analytical measurement, semiconductor, and board testing.
Shares of this global leader in analytical and clinical laboratory technologies have underperformed the broader market over the past year. A has gained 6.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 32.1%. In 2024, A stock is down 3.4%, compared to the SPX’s 26.2% rise on a YTD basis.
Narrowing the focus, A’s underperformance is apparent compared to the Robo Global Healthcare Technology and Innovation ETF (HTEC). The exchange-traded fund has gained about 17.5% over the past year. Moreover, the ETF’s 5.4% gains on a YTD basis outshine the stock’s losses over the same time frame.
On Nov. 25, A shares closed up marginally after reporting its Q4 results. Its adjusted EPS of $1.46 beat Wall Street expectations of $1.41. The company’s revenue was $1.7 billion, surpassing Wall Street forecasts of $1.67 billion. For Q1, Agilent expects its adjusted EPS to range from $1.25 to $1.28, and expects revenue in the range of $1.65 billion to $1.68 billion. Agilent expects full-year adjusted EPS to be between $5.54 and $5.61, and expects revenue to be $6.8 billion to $6.9 billion.
For the current fiscal year, ended in October, analysts expect A’s EPS to decline 3.7% to $5.24 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 16 analysts covering A stock, the consensus is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, seven “Holds,” and one “Strong Sell.”
This configuration is more bullish than three months ago, with seven analysts suggesting a “Strong Buy.”
On Nov. 26, Evercore ISI kept an “In Line” rating and lowered the price target on A to $142, implying a potential upside of 5.7% from current levels.
The mean price target of $151 represents a 12.4% premium to A’s current price levels. The Street-high price target of $165 suggests an ambitious upside potential of 22.8%.
