NEW YORK (TheStreet) -- Agilent Technologies (A) was falling 6.46% to $56.20 on Friday after the life science, diagnostic and electronic instrumentation and measurement company lowered its guidance for the fiscal year 2014.
The company trimmed its adjusted earnings per share guidance to a range of $2.96 to $3.16 from a range of $3.03 to $3.33. Analysts had expected EPS of $3.19, excluding items, according to Thomson Reuters I/B/E/S.
Agilent also reported first-quarter EPS of 67 cents, which beat the Zacks consensus estimate by a penny. Sales stayed flat year over year at $1.68 billion.
TheStreet Ratings team rates AGILENT TECHNOLOGIES INC as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate AGILENT TECHNOLOGIES INC (A) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, A's share price has jumped by 29.27%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, A should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The current debt-to-equity ratio, 0.51, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, A has a quick ratio of 2.23, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for AGILENT TECHNOLOGIES INC is rather high; currently it is at 58.79%. Regardless of A's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, A's net profit margin of 12.28% compares favorably to the industry average.
- A, with its decline in revenue, underperformed when compared the industry average of 13.4%. Since the same quarter one year prior, revenues slightly dropped by 2.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: A Ratings Report