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Agilent Earnings: Biopharma Market Uncertainty Pushes Down 2023 Outlook, Despite Strong Period

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Securities In This Article
Agilent Technologies Inc
(A)

Wide-moat Agilent A released second-quarter results that were slightly above expectations, but given ongoing biopharma market uncertainty, management reduced some parts of its 2023 guidance a bit. While we may tinker with our some of our near-term assumptions slightly after this announcement, importantly, management kept guidance intact for the key driver of our $127 fair value estimate—cash flows. Overall, we think Agilent’s long-term prospects remain intact, too, and with Agilent shares trading near our current fair value estimate, shares appear to represent a growth at a reasonable price opportunity.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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About the Author

Julie Utterback, CFA

Senior Equity Analyst
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Julie Utterback, CFA, is a senior equity analyst, AM Healthcare, for Morningstar*. She focuses on medical technology and service companies. She covers managed care organizations including UnitedHealth, service providers like HCA, medical suppliers such as Baxter, and life sciences companies like Danaher. She is also the chairperson of the equity research team’s capital allocation methodology.

Before joining Morningstar in 2005, Utterback was an equity analyst at State Farm Insurance for several years. Utterback joined Morningstar in 2005 as an equity analyst in the healthcare industry, and initially she primarily covered medical technology companies, including orthopedic device, medical equipment, and cardiac device firms. In 2010, she joined Morningstar's credit research team, initiating coverage of the entire healthcare industry and generally helping the organization expand and maintain its credit coverage across many industries. She held that senior credit analyst role until April 2019, when she returned to the equity team to cover medical technology and service companies.

Utterback holds a bachelor's degree in finance from the University of Illinois Urbana-Champaign’s Gies College of Business. She also holds the Chartered Financial Analyst® designation.

* Morningstar Research Services LLC (“Morningstar”) is a wholly owned subsidiary of Morningstar, Inc

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