Agilent Technologies A is set to report first-quarter fiscal 2025 results on Feb. 26.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

For the first quarter of fiscal 2025, the company expects revenues of $1.65-$1.68 billion, suggesting a decline of 0.5-1.3% on a reported basis and 2.0-0.2% on a core basis from the year-ago quarter’s actuals.

The Zacks Consensus Estimate for first-quarter fiscal 2025 revenues is pegged at $1.67 billion, suggesting a year-over-year increase of 0.56%.

Agilent’s non-GAAP fiscal first-quarter earnings are expected to be $1.25-$1.28 per share.

The consensus mark for earnings is pegged at $1.27 per share, unchanged over the past 30 days. The figure indicates a 1.55% decrease from the year-ago quarter’s reported figure.

Agilent’s earnings surpassed the Zacks Consensus Estimate in the four trailing quarters, averaging 4.57%.

Let us see how things have shaped up before this announcement.

Factors to Note for A’s Q1 Earnings

Agilent’s first-quarter fiscal 2025 performance is expected to have been affected by two percentage points by the timing of the Lunar New Year.

The company’s first-quarter fiscal 2025 free cash flow is expected to have declined marginally, led by higher capital expenditure than the prior year. This increase in spending reflects the completion of significant investment levels for the NASD expansion, particularly for Trains C and D, which is likely to have affected its growth in the quarter under review.

In the first quarter of fiscal 2025, profitability is expected to have come under pressure due to lower revenues, while expenses are typically higher during this period. This increase in expenses is likely to have been partly driven by merit resets and contributed to elevated expense levels.

Agilent is expected to have faced headwinds from a slowing global economy and geopolitical uncertainties, especially in China, a key market for the company. These challenges are likely to have weighed on demand and operational efficiency in the first quarter of 2025.

A’s fourth-quarter book-to-bill ratio exceeded 1, reflecting a strong order pipeline and steady market improvement. This positive trend signals sustained demand, which is expected to have benefited Agilent in the to-be-reported quarter.

The company's acquisition of BIOVECTRA is set to have enhanced its Contract Development and Manufacturing Organization business, particularly in oligonucleotides and CRISPR therapeutics. This move is anticipated to have expanded the company's service offerings in peptide synthesis, driving revenue growth in the first quarter of 2025.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.

A has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as, per our model, they possess the right combination of elements to exceed earnings estimates this time around:

Argenx ARGX has an Earnings ESP of +29.90% and sports a Zacks Rank of #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

ARGX shares have returned 4.8% year to date. Argenx is set to report fourth-quarter 2024 results on Feb. 27.

Certara CERT currently has an Earnings ESP of +4.00% and a Zacks Rank #2.

CERT shares have gained 23.6% year to date. Certara is set to report fourth-quarter 2024 results on Feb. 26.

Evolus EOLS has an Earnings ESP of +45.46% and a Zacks Rank #3 at present.

EOLS shares have gained 26.7% year to date. Evolus is set to report fourth-quarter 2024 results on March 04.

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Agilent Technologies, Inc. (A) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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