Agilent Technologies (NYSE: A) provides electronic measurement and bio-analytical solutions to the communications, electronics, life sciences and chemical analysis industries. Its Electronic Measurement segment offers such instruments as data generators, multimeters, and oscilloscopes. The Bio-Analytical Measurement unit sells instruments, software, consumables and services for quantifying the physical and biological properties of substances. Customers include Cisco Systems (NASDAQ: CSCO) and Merck (NYSE: MRK). The firm was a 1999 spin-off of Hewlett-Packard (NYSE: HPQ).

Agilent pleased investors last week, when it announced fiscal Q2 EPS of 51 cents and revenues of $1.46 billion. Analysts had been looking for 48 cents and $1.43 billion. Management also guided Q3 EPS to 52-56 cents (55 cent consensus), Q3 revenues to $1.44-$1.49 billion ($1.46B consensus), FY08 EPS to $2.07-$2.15 ($2.08 consensus) and FY08 revenues to $5.82-$5.93 billion ($5.83B consensus). Needham subsequently reiterated its "buy" recommendation and boosted its price target to $42. Standard & Poor's raised its Agilent outlook from "stable" to "positive".

Agilent Technologies Inc. (NYSE: A) shares are trading higher today after the company posted a higher quarterly profit yesterday after the close. Net profit rose to $180 million, or 46 cents per share, from $149 million, or 36 cents a share, a year earlier. Revenue rose to $1.45 billion from $1.33 billion a year earlier and ahead of the average Wall Street forecast for $1.41 billion. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on A.

Agilent hit a one-year low of $30.26 in March, and made its one-year high of $40.42 in July. A opened this morning at $34.99. So far today the stock has hit a low of $34.93 and a high of $36.80. As of 11:00, A is trading at $36.80, up $3.10 (9.2%). The chart for A looks bearish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider a January bull-put credit spread below the $32.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 10.4% return in just 9 weeks as long as A is above $32.50 at January expiration. Agilent would have to fall by more than 11% before we would start to lose money. Learn more about this type of trade here.

A hasn't been below $32.50 by more than a few cents since March and has shown support around $33 recently. This trade could be risky if the stock's earnings aren't quite as rosy as they seem at first glance, but even if that happens, this position could be protected by support the stock formed between $32.50 and $35 over the past four months.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in A.

Industrial, scientific and engineering operations are critically dependent on the precise measurement of basic physical parameters. Among the best known manufacturers of many of the devices required for these purposes is headquartered in Santa Clara, California.

Agilent Technologies (NYSE: A) provides electronic measurement and bio-analytical solutions to the communications, electronics, life sciences and chemical analysis industries. Its Electronic Measurement segment offers such instruments as data generators, multimeters, and oscilloscopes. Its Bio-Analytical Measurement segment provides instruments and consumables that enable customers to quantify the biological properties of substances. Customers include Cisco Systems (NASDAQ: CSCO), Dow Chemical (NYSE: DOW), Intel (NASDAQ: INTC) and Merck (NYSE: MRK). The firm was a 1999 spin-off of Hewlett-Packard (NYSE: HPQ).

Agilent announced the acquisition of life science research and diagnostic products firm Stratagene last week and said that, as a result, it expects Q3 revenues to be in the range $1.38-$1.42 billion. Analysts had been looking for $1.38 billion. The acquisition did not affect the company's earnings outlook. The news kept Agilent shares cycling through a positive two-month trading channel. The price is currently consolidating at the base of that channel, where oversold CCI, MACD, Momentum, RSI and Stochastic technical parameters suggest the potential for a rise back toward the top. Correspondence of the stock's 30-day moving average curve to the base of the channel backs the rebound notion.

Brokers recommend the issue with two "strong buys," three "buys" and four "holds." Analysts expect a 19% growth rate through the next year. The Agilent Price to Free Cash Flow ratio (21.92), Operating Margin (11.09%), Net Profit Margin (12.48%), Return on Assets (7.82%) and Return on Investment (10.00%) compare favorably with industry averages.

Institutional investors hold about 74% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $26.96 and $38.97. A stop-loss of $32.70 looks good here. Note that the firm expects to report Q3 results in mid-August.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

Bio-chemical instrument maker and measurement company Agilent Technologies (NYSE: A) reported good 1Q 2007 numbers. Revenues for the quarter were $1.28 billion, up 10% from 1Q 2006. GAAP income before equity for the quarter was $150 million, $0.36 per diluted share, double the $73 million, $0.15 per share in 1Q 2006. Adjusted net income from continuing operations was $162 million, $0.39 per share, 34% above last year's $0.29 per share. Revenue from its Bio-Analytic segment was up 22% to $455 million, Electronic Measurement sector was up 4% to $817 million, Life Sciences revenue were up 23% to $195 million, Chemical Analysis revenues were up 21% to $260 million, but handheld testing devices revenue was down.

Agilent has been making some strategic moves recently. It spent $70 million on acquisitions in the first quarter, and purchased $254 million of its own stock, ending the quarter with just over $2 billion in net cash. Agilent CEO Bill Sullivan expects revenues in 2Q 2007 to be between $1.3-$1.34 billion, up 5-8%, with net income in the $0.41-$0.45 per share range.

In related news, Agilent will accelerate its $2 billion stock repurchase program. All told, since 2005 through 2007, Agilent will repurchase more than $6 billion worth of shares.

Agilent recently announced its intention to purchase Stratagene for $246 million, $10.94 per share, a hefty premium over the stock's closing of $8.51 on the day of the announcement. Agilent also recently won a multi-year, $94 million contract from the U.S. Army to test radio communications networks under combat conditions.