Agilent Technologies Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Agilent Technologies (NYSE:A) will unveil its latest earnings on Monday, November 19, 2012. Agilent Technologies is focused on the design and manufacturing of core bio-analytical and electronic measurement solutions. It serves customers in sectors such as communications, electronics, life sciences, and chemical analysis.

Agilent Technologies Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 80 cents per share, a decline of 4.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 91 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 81 cents during the last month. Analysts are projecting profit to rise by 3.7% compared to last year’s $3.06.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the third quarter, it reported profit of 79 cents per share against a mean estimate of 83 cents. Two quarters ago, it beat expectations by 5 cents with net income of 78 cents.

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A Look Back: In the third quarter, profit fell 26.4% to $243 million (69 cents a share) from $330 million (92 cents a share) the year earlier, missing analyst expectations. Revenue rose 1.9% to $1.72 billion from $1.69 billion.

Stock Price Performance: Between September 18, 2012 and November 13, 2012, the stock price had fallen $3.22 (-8.1%), from $39.55 to $36.33. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 9, 2012, when shares rose for six straight days, increasing 8.1% (+$3.05) over that span. It saw one of its worst periods between May 2, 2012 and May 14, 2012 when shares fell for nine straight days, dropping 9.6% (-$4.14) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.01 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.28 in the second quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 29.9% to $4.21 billion while liabilities rose by 13.9% to $2.09 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 9.6% in the fourth quarter of the last fiscal year, 7.6% in the first quarter and 3.3% in the second quarter before increasing again in the third quarter.

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 19.2% in the first quarter and 27.5% in the second quarter before dropping in the third quarter.

Analyst Ratings: With 14 analysts rating the stock a buy, none rating it a sell and none rating the stock a hold, there are indications of a bullish stance by analysts.

Wall St. Revenue Expectations: Analysts predict a rise of 1.7% in revenue from the year-earlier quarter to $1.76 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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