The chart below shows how A performed 10 days before and after its earnings report, based on data from the past quarters. Typically, A sees a -0.09% change in stock price 10 days leading up to the earnings, and a +0.43% change 10 days following the report. On the earnings day itself, the stock moves by -0.19%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Core Revenue Growth Exceeds Expectations: Agilent exceeded expectations for core revenue growth and EPS in Q1 2025, with revenue of $1.681 billion, a 1% increase year-over-year.
Food Market Growth: The company reported strong growth in the Food market, which grew 9% driven by success in capturing stimulus orders in China.
Positive Market Recovery: Agilent's instrument book-to-bill ratio was greater than one in Q1, indicating a positive market recovery and strong customer focus.
Infinity III Series Adoption: The Infinity III series has seen great adoption, with customers appreciating its advanced automation and backward compatibility, leading to significant upgrade opportunities.
Life Sciences Market Growth: The Life Sciences and Diagnostics Markets Group reported a 1% growth, driven by high-single-digit growth in LC and LCMS instruments following the Infinity III launch.
CrossLab Group Growth: The Agilent CrossLab Group grew 3%, led by services, with positive responses to their InfinityLab Assist automation software and OpenLab CDS.
PFAS Testing Solutions Growth: PFAS testing solutions saw a remarkable 70% growth in Q1, contributing significantly to overall company growth.
Strong Financial Position: Agilent's strong balance sheet and cash flow were highlighted, with operating cash flow of $431 million and a net leverage ratio of 1.0.
Global Lighthouse Recognition: The company was recognized by the World Economic Forum for its manufacturing sites in Shanghai and Penang as Global Lighthouse Networks, showcasing its advancements in technology and sustainability.
Sustainability Recognition: Agilent was ranked No. 10 on Newsweek's 2025 list of America’s Most Responsible Companies, reflecting its commitment to sustainability and positive global impact.
Negative
Below Target Revenue Growth: Revenue growth was only 1% year-over-year, which is below the company's target growth rate of 5% to 7%.
Revenue Decline Challenges: The Applied Markets Group reported a 2% decline in revenue, indicating challenges in that segment despite strong performance in China.
Gross Margin Decline: Gross margin decreased to 54.7%, down from the previous year, primarily due to unfavorable product mix and currency impacts.
Conservative Growth Guidance: The company is maintaining a conservative core growth guidance of 2.5% to 3.5% for the year, reflecting uncertainty in the U.S. federal funding environment.
Currency Impact Forecast: Currency fluctuations are expected to have a significant negative impact, with an estimated 1.9% headwind for the year, which is higher than previously anticipated.
Market Segment Decline: The Academia and Government market, which is the smallest segment, saw a decline of 7%, indicating weakness in that area.
Agilent Technologies, Inc. (A) Q1 2025 Earnings Call Transcript
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