Agilent (NYSE:A) Stock Up on Upbeat Fiscal Q4 Results

Agilent Technologies (NYSE:A) ended Fiscal 2022 on a strong note, with upbeat performance across its key markets in the fourth quarter (ended October 31, 2022). Agilent, which offers instruments, software, and services for laboratories, delivered adjusted earnings per share of $1.53 in fiscal Q4, up 26% year-over-year and ahead of analysts’ estimate of $1.38.

Agilent stock rose nearly 5% in Tuesday’s pre-market trading. Shares are down 9.2% year-to-date. Earnings gained from impressive operating margin expansion despite the impact of inflation and currency headwinds. Higher margins were driven by strong volumes and increased pricing.  

The company’s Fiscal Q4 revenue grew 11.4% to $1.85 billion, exceeding the Street’s expectation of $1.76 billion. The top-line growth was fueled by continued strength in two of the company’s largest markets – Pharma as well as Chemical and Advanced Materials. Coming to regional performance, revenue from China increased 44% driven by robust demand across all end markets.

Despite persistent macro uncertainties and forex headwinds, Agilent expects Fiscal 2023 revenue between $6.9 billion and $7.0 billion, reflecting growth of 0.8% to 2.2%. It expects adjusted EPS in the range of $5.61 and $5.69. The company’s guidance reflects a solid backlog and continued momentum in China.  

Is Agilent Stock a Buy?

Wall Street’s Moderate Buy consensus rating for Agilent stock is based on two unanimous Buys. The average Agilent stock price target of $155 implies nearly 7% upside potential from current levels.