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A Earnings: Agilent Tanks 13% after Issuing Weak Guidance
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A Earnings: Agilent Tanks 13% after Issuing Weak Guidance

Story Highlights

Agilent’s management revised its outlook downward and now expects revenue and adjusted earnings per share for FY 2024 to be in the ranges of $6.42 billion to $6.5 billion and $5.15 to $5.25, respectively.

Shares of Agilent Technologies (NYSE:A) tanked in after-hours trading after the medical diagnostics company reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $1.22, which beat analysts’ consensus estimate of $1.19 per share. However, sales decreased by 8.7% year-over-year, with revenue hitting $1.57 billion. This missed analysts’ expectations of $1.583 billion.

Looking forward, management revised its outlook downward and now expects revenue and adjusted earnings per share for FY 2024 to be in the ranges of $6.42 billion to $6.5 billion and $5.15 to $5.25, respectively. For reference, analysts were expecting $6.776 billion in revenue along with an adjusted EPS of $5.50.

Insiders Have Been Selling

When looking at insider activity, there seems to be a lot of selling. In fact, insiders have sold $417,100 worth of Agilent shares in the past three months. As a result, confidence from within appears to be low, as the Insider Confidence Signal for Agilent stock is Negative and is below the sector average, as shown in the picture below:

Is Agilent a Buy or Sell?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on Agilent stock based on three Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. After a 25% rally in its share price over the past year, the average Agilent price target of $150 per share implies 2.85% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.

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