Agilent Technologies' Q2 Earnings Preview

| About: Agilent Technologies (A)

Agilent Technologies Inc. (NYSE:A) trades an average of 5.52 million shares per day, and has a market cap of $11.91 billion. Agilent provides bio-analytical and electronic measurement solutions to the communications, electronics, life sciences, and chemical analysis industries in the United States and internationally. Agilent is a component of the S&P 500, as well as several NASDAQ indices. The company was founded in 1999 and is headquartered in Santa Clara, California.

Time Released: Monday August 15, After Closing Bell

Analysts are expecting similar earnings per share compared to last quarter's results of $0.74. The company has beat estimates in the last four out of five quarters. Investors will be looking to top $0.73 per share, based on the estimated mean earnings. Analyst estimates range between $0.72 and $0.75 per share.

  • Recent Price: $32.17
  • 52 Week High: $55.33
  • 52 Week Low: $26.68
  • Book Value: $11.36

For the same fiscal period year-over-year, revenue has improved to $5.44 billion for 2010 vs. $4.48 billion for 2009. The bottom line has rising earnings year-over-year of $684 million for 2010 vs. $-31.00 million for 2009. The company's earnings before income and taxes are rising with an EBIT year-over-year of $566.00 million for 2010 vs. $47.00 million for 2009.

I believe the earnings release will likely be overshadowed by the overall market uncertainty. The stock has just been hammered hard, along with the rest of the S&P 500. I rate Agilent, based on my valuation, as oversold and due for a bounce higher. I especially like the idea of shorting September $30 strike put options that are pricing currently at $1.70. The risk is lower compared to buying the stock outright, and if I get exercised against, I will not mind holding this one in my portfolio.

Gross reported revenue compared to the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Apr-11 $ 1.60 B $ 1.68 B $ 75.48 M 4.71%
Jan-11 $ 1.55 B $ 1.52 B $ -24.84 M -1.6%
Oct-10 $ 1.52 B $ 1.58 B $ 59.34 M 3.89%
Jul-10 $ 1.41 B $ 1.40 B $ -14.16 M -1%
Apr-10 $ 1.25 B $ 1.27 B $ 25.28 M 2.03%

M = millions, B = billions

Reported earnings per share compared to the mean estimate. Differences are rounded.

Fiscal Quarter Ending Month-Year Estimate Actual Difference Difference %
Apr-11 0.65 0.74 0.09 13.85%
Jan-11 0.57 0.6 0.03 5.26%
Oct-10 0.60 0.65 0.05 8.33%
Jul-10 0.48 0.54 0.06 12.5%
Apr-10 0.41 0.43 0.02 4.88%

(Some onetime items are often excluded in reported EPS.)


Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in A over the next 72 hours.

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Tagged: , Medical Laboratories & Research, Earnings
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