Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 29 Nov, 24 | A | Speculative Buy | USD 138.14 | USD 150.57 | USD 161.62 | 51 days | 17.0% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Agilent Technologies, Inc. provides application focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide. The company operates in three segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab. The Life Sciences and Applied Markets segment offers liquid chromatography systems and components; liquid chromatography mass spectrometry systems; gas chromatography systems and components; gas chromatography mass spectrometry systems; inductively coupled plasma mass spectrometry instruments; atomic absorption instruments; microwave plasma-atomic emission spectrometry instruments; inductively coupled plasma optical emission spectrometry instruments; raman spectroscopy; cell analysis plate based assays; flow cytometer; real-time cell analyzer; cell imaging systems; microplate reader; laboratory software; information management and analytics; laboratory automation and robotic systems; dissolution testing; and vacuum pumps, and measurement technologies. The Diagnostics and Genomics segment focuses on genomics, nucleic acid contract manufacturing and research and development, pathology, companion diagnostics, reagent partnership, and biomolecular analysis businesses. The Agilent CrossLab segment provides GC and LC columns, sample preparation products, custom chemistries, and laboratory instrument supplies; and offers services portfolio, including repairs, parts, maintenance, installations, training, compliance support, software as a service, asset management, and consulting services. The company markets its products through direct sales, distributors, resellers, manufacturer's representatives, and electronic commerce. Agilent Technologies, Inc. was incorporated in 1999 and is headquartered in Santa Clara, California.
Improved Profitability: Gross Margin of 54.3% in FY24 vs 50.9% in FY23
Operating Efficiency: Asset Turnover of 0.58x in FY24 vs Industry Median of 0.42x
Lower Liquidity: Current Ratio of 2.09x in Fy24 vs Industry Median of 2.31x
Balance Sheet Risk: Debt-Equity of 0.57x in FY24 vs Industry Median of 0.26x
Agilent Technologies Inc. faces company-specific risks including market volatility, intense competition, regulatory challenges, supply chain disruptions, reliance on key customers, cybersecurity threats, and intellectual property concerns.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 138.14 | 120.18 | 150.57 | 161.62 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Q4 2024 Revenue Growth and Earnings Performance
Agilent Technologies Inc. (NYSE: A) reported revenue of USD 1.70 billion for the fourth quarter of fiscal year 2024, reflecting a 0.8% increase on a reported basis compared to the same quarter in 2023. However, on a core basis, revenue declined by 0.3%. GAAP net income for the quarter was USD 351 million, or USD 1.22 per share, marking a 25% decrease in EPS compared to the fourth quarter of fiscal year 2023, when the company recorded USD 475 million in net income, or USD 1.62 per share. On a non-GAAP basis, net income for Q4 2024 stood at USD 418 million, or USD 1.46 per share, representing a 6% increase in EPS compared to the prior year’s USD 1.38 per share.
Full Fiscal Year 2024 Performance
For the full fiscal year 2024, Agilent reported total revenue of USD 6.51 billion, which represented a 4.7% decline both on a reported and core basis year-over-year. GAAP net income for the year was USD 1.289 billion, or USD 4.43 per share, reflecting a 6% increase in EPS compared to the previous year. In contrast, non-GAAP net income for fiscal year 2024 amounted to USD 1.539 billion, or USD 5.29 per share, down 3% year-over-year. Despite some headwinds in certain markets, Agilent’s overall financial performance demonstrated resilience and the company's ability to adapt to a changing business environment.
Positive Outlook for Fiscal Year 2025
Agilent offered a positive revenue outlook for fiscal year 2025, projecting revenue to fall between USD 6.79 billion and USD 6.87 billion. This represents an anticipated growth range of 4.3% to 5.5% on a reported basis and 2.5% to 3.5% on a core basis. Non-GAAP earnings per share (EPS) for the year are expected to range from USD 5.54 to USD 5.61. The company remains optimistic about capturing growth opportunities, bolstered by its strategic transformation and an improving market environment.
First-Quarter 2025 Revenue and Earnings Forecast
For the first quarter of fiscal year 2025, Agilent expects revenue to range from USD 1.65 billion to USD 1.68 billion, indicating a potential decline of 0.5% to an increase of 1.3% on a reported basis, and a core revenue decline of 2.0% to a modest decrease of 0.2%. Non-GAAP EPS for the first quarter is projected to be between USD 1.25 and USD 1.28. While the outlook suggests some short-term challenges, the company’s long-term growth strategy remains intact, and it expects gradual recovery as market conditions stabilize.
Segment Performance: Life Sciences and Applied Markets Group
Agilent’s Life Sciences and Applied Markets Group (LSAG) recorded fourth-quarter revenue of USD 833 million, down 1% both on a reported and core basis compared to the same period in the previous year. The segment's operating margin for Q4 2024 was 28.0%. For the full year, LSAG generated USD 3.22 billion in revenue, representing an 8% decline on both a reported and core basis. Despite the downturn in this segment, the company’s margin performance demonstrated its ability to maintain profitability amid challenging market conditions.
Segment Performance: Agilent CrossLab Group
The Agilent CrossLab Group (ACG) performed strongly in the fourth quarter, reporting revenue of USD 426 million, which marked a 5% increase on both a reported and core basis year-over-year. The segment’s operating margin for the quarter was 32.6%. For the full year, ACG’s revenue totaled USD 1.64 billion, reflecting a 5% growth on both a reported and core basis. The group’s strong performance was driven by Agilent’s strategic focus on customer-centric services and continued investment in operational efficiencies, which have contributed to a sustained growth trajectory.
Segment Performance: Diagnostics and Genomics Group
Agilent's Diagnostics and Genomics Group (DGG) reported fourth-quarter revenue of USD 442 million, a 1% decline on a reported basis and a 3% decline on a core basis compared to Q4 2023. The segment’s operating margin for the quarter stood at 21.2%. For the full fiscal year, DGG’s revenue totaled USD 1.65 billion, marking a 6% decline both on a reported and core basis from the prior year. Despite these challenges, the group continues to focus on innovation and operational efficiencies, with the potential to recover as market conditions improve.
Strategic Transformation and Future Growth Opportunities
Commenting on the company’s performance, Agilent President and CEO Padraig McDonnell highlighted the successful execution of the company's strategic initiatives, including its market-based, customer-first approach and an ongoing organizational transformation. The new organizational structure, which was recently announced, is designed to position Agilent to capture additional growth opportunities as market conditions improve. McDonnell expressed optimism about the future and mentioned that further details regarding these developments will be shared at Agilent’s Analyst and Investor Day in December
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Diagnostics & Research
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| A Agilent Technologies Inc |
-1.9395 1.66% | 114.79 | 34.36 | 26.39 | 6.59 | 7.14 | 6.78 | 23.56 |
| TMO Thermo Fisher Scientific Inc |
-7.52 1.51% | 490.08 | 34.71 | 23.87 | 4.62 | 4.43 | 5.29 | 20.89 |
| DHR Danaher Corporation |
-2.105 1.03% | 202.90 | 29.09 | 28.01 | 5.67 | 3.20 | 6.00 | 19.09 |
| IDXX IDEXX Laboratories Inc |
3.48 0.83% | 423.44 | 49.99 | 45.66 | 11.29 | 27.85 | 11.46 | 34.46 |
| IQV IQVIA Holdings Inc |
-2.34 1.33% | 173.96 | 37.82 | 19.68 | 2.76 | 7.20 | 3.61 | 17.03 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on fundamental parameters in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 27, 2024. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2023 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
