Baird has revised its price target for Agilent (A, Financial), adjusting it from $159 down to $140. Despite this change, the firm maintains an Outperform rating on the stock. This adjustment comes as Baird updates its financial model before Agilent's upcoming second-quarter results.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Agilent Technologies Inc (A, Financial) is $140.25 with a high estimate of $165.00 and a low estimate of $113.20. The average target implies an upside of 28.77% from the current price of $108.91. More detailed estimate data can be found on the Agilent Technologies Inc (A) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Agilent Technologies Inc's (A, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Agilent Technologies Inc (A, Financial) in one year is $144.62, suggesting a upside of 32.79% from the current price of $108.91. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Agilent Technologies Inc (A) Summary page.
A Key Business Developments
Release Date: February 26, 2025
- Revenue: $1.681 billion, a 1% increase year-over-year.
- Core Revenue Growth: 1.2%, exceeding expectations.
- Gross Margin: 54.7%, impacted by mix, currency, and timing of Lunar New Year.
- Operating Margin: 25.1%, in line with expectations despite currency headwinds.
- Net Income: Earnings per share of $1.31, up 2% from the previous year.
- Life Science and Diagnostics Markets Group Revenue: $647 million, a 1% increase.
- Agilent CrossLab Group Revenue: $696 million, a 3% increase.
- Applied Markets Group Revenue: $338 million, a 2% decline.
- Cash Flow: Operating cash flow of $431 million.
- Capital Expenditures: $97 million.
- Share Repurchase: $90 million in shares purchased.
- Dividend Payments: $71 million paid out.
- Net Leverage Ratio: 1.0.
- Full Year Revenue Guidance: Adjusted to $6.68 billion to $6.76 billion due to currency headwinds.
- Full Year EPS Guidance: $5.54 to $5.61, representing a 4.7% to 6% increase.
- Q2 Revenue Guidance: $1.61 billion to $1.65 billion.
- Q2 EPS Guidance: $1.25 to $1.28, representing growth of 2.5% to 4.9%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Agilent Technologies Inc (A, Financial) exceeded expectations for core revenue growth and EPS in Q1 2025.
- The company reported strong growth in its digital ecosystem, with digital orders growing in high single digits.
- Agilent's collaboration with ABB Robotics is expected to enhance lab productivity and efficiency.
- The Infinity III series has seen great adoption, contributing to increased win rates and customer satisfaction.
- Agilent's performance in China was strong, with a 50% win rate on stimulus-related tenders, indicating market leadership.
Negative Points
- The Applied Markets Group reported a 2% decline in revenue, despite better-than-expected performance related to China's stimulus orders.
- Currency fluctuations posed a significant headwind, impacting revenue and EPS guidance for the year.
- The academia and government market saw a 7% decline, with soft results globally.
- Concerns about potential reductions in NIH funding and tariffs could impact future performance.
- Gross margins were down due to product mix and currency impacts, with expectations for improvement throughout the year.
