Agilent Earnings: Solid, but Management Pushes Down Fiscal 2024 Guidance on Slower Recovery Timeline

Wide-moat Agilent delivered fiscal second-quarter profits that were slightly better than management's target. However, management cut its outlook for fiscal 2024, including a core revenue decline of 4%-5% (down from a 1% decline-1% growth previously) and adjusted EPS to $5.15-$5.25, or a 3%-5% decline (down from $5.44-$5.55 or 0%-2% growth, previously.) While we have reduced our near-term assumptions for Agilent, our long-term expectations have not changed materially, and our $151 fair value estimate remains intact. Shares are diving on this guidance cut, though, which may give investors an opportunity to grab shares in this high-quality firm at a discount to fair value.