Agilent Technologies Stock Jumps As Earnings Top Estimates—Key Levels to Watch

Agilent Technologies, Inc.

Shares in Agilent Technologies (A) gained nearly 5% in Tuesday’s extended-hours trading session after the laboratory supplies maker topped analysts’ quarterly top- and bottom-line expectations, despite sales contracting from the prior year.

The Santa Clara, California-based company posted fiscal first-quarter adjusted earnings per share of $1.29 on revenue of $1.66 billion. Wall Street had expected earnings of $1.22 on sales of $1.59 billion. Despite the top line coming in ahead of the consensus view, it fell 5.6% from a year earlier as growth in services and consumables was offset by conservative capital equipment spending across most of Agilent’s end markets. The company said ongoing sequential stabilization in China and secular growth drivers globally in applied markets underpinned the better-than-expected quarterly results.

Looking ahead to the fiscal second quarter, the company forecasts adjusted earnings to range between $1.17 and $1.20 a share, with the upper end of that band missing the Street estimate of $1.26. Agilent projects revenue for the period of $1.56 billion to $1.59 billion, which compares to $1.62 billion modeled by analysts.

Agilent president and CEO Mike McMullen, who will be succeeded by chief operating officer (COO) Padraig McDonnell on May 1, said on the company’s earnings call that he expects the market environment to undergo a slow and steady improvement in the second half of the year. He added, “we will maintain our approach to prioritize investing for growth, with a focus on execution and driving productivity.”

Since the 50-day moving average crossed above the 200-day moving average in early January to generate a golden cross buy signal, the Agilent share price has traded mostly sideways on below-average volume.

If the stock has a post-earnings rally, keep a close eye on the $141 level. This area on the chart may provide overhead resistance from a trendline linking the April and December swing highs. A convincing close above this region opens the door to a potential rally up to the next key level of resistance near a prior double top pattern around $160.

Agilent shares rose 4.9% to $138.99 in after-hours trading Tuesday.

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As of the date this article was written, the author does not own any of the above securities.