Agilent Technologies, Inc. (A) provides instruments, software, services, and solutions in life sciences, diagnostics, and applied chemical markets.
On August 17, Agilent delivered better-than-expected Q3 numbers, and raised full-year guidance.
Let’s take a look at its financial performance, as well as what has changed in its key risk factors that investors should be aware of. (See Agilent stock charts on TipRanks)
Boosted by double-digit growth across all verticals, Agilent’s Q3 revenue increased 25.8% year-over-year to $1.59 billion, beating estimates by $44.2 million.
Agilent president and CEO Mike McMullen remarked, “Our focus on high-growth businesses and strong execution has again led to another quarter of excellent results and we expect this momentum to continue as we close out our fiscal year.”
Earnings per share rose 41% over the previous year to $1.10, outperforming consensus by $0.11.
Looking ahead, Agilent expects Q4 revenue to be between $1.63 billion and $1.66 billion. It sees earnings per share landing between $1.15 and $1.18.
On August 18, Jefferies analyst Brandon Couillard reiterated a Buy rating on the stock, and increased the price target to $185 from $155.
Based on eight Buys and one Hold, Agilent’s consensus rating on the Street is a Strong Buy. The average Agilent price target of $177.11 implies the stock is fairly priced at current levels. Shares are up 49.4% in 2021.
Risk Profile
According to the new TipRanks Risk Factors tool, Agilent’s main risk category is Legal & Regulatory, accounting for 25% of the total 32 risks identified. Since April, the company has changed two key risk factors under the Macro & Political risk category.
First, Agilent acknowledged that the COVID-19 pandemic has negatively impacted, and continues to present risks to certain elements (sales, supply chain, and deliveries) of the company’s financial condition and operations.
Second, Agilent noted that adverse conditions in the global banking industry and credit markets may negatively impact the value of Agilent’s cash investments. Any failure of Agilent’s counterparty financial institutions, or funds in which it has invested, may impact the company’s cash position.
The sector average Legal & Regulatory risk factor is 20%.
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