Agilent Technologies Fourth Quarter Earnings Preview

When Agilent Technologies (NYSE:A) releases its fourth quarter earnings on Monday, November 19, 2012, analysts are expecting a 4.8% drop in earnings from a year ago. The consensus estimate is 80 cents per share, down from earnings of 84 cents per share a year ago.



Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: Can Earnings Guidance Accurately Predict The Future?

What to Expect: Whereas the consensus estimate was 91 cents three months ago, it has since fallen. Analysts are projecting earnings of $3.06 per share for the fiscal year.

Revenue is expected to exceed last year's figure of $1.73 billion by 1.9% and come in at $1.76 billion for the quarter. For the fiscal year, expected revenue is $6.85 billion.



Company Performance: Revenue has risen year-over-year for four consecutive quarters now. It rose 1.9% in the third quarter, 3.3% in the second quarter, 7.6% in the first quarter and 9.6% in the fourth quarter of the last fiscal year.

There are generally two price/earnings ratios calculated: the first, called the trailing Price/Earnings ratio, is calculated using the previous years actual earnings; the second, called forward Price/Earnings ratio, is calculated using the next year's estimated earnings. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Investment Valuation Ratios: Price/Earnings Ratio



Since August 16, 2012, the stock price has fallen 2.2% to $36.33 from $37.15. Agilent's stock price is on a downward streak. The share price has fallen $1.95 since November 6, 2012.