01—Abstract
Summary
Summary of the 10-K filed December 20, 2016. Cited figures are marked; the original filing is the authoritative source.
Agilent Technologies, Inc.'s 2016 10-K filing reveals a company focused on life sciences, diagnostics, and applied chemical markets.
The company generated $4.2 billiona in net revenue for the fiscal year ended October 31, 2016, with 70% of that revenue coming from international markets. Agilent operates through three primary segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab. The company is strategically investing in R&D and making targeted acquisitions to drive growth and expand its offerings in areas like cell analysis and core laboratory management.
Despite a challenging economic environment and unfavorable currency movements impacting revenue by approximately 2%b, Agilent demonstrated resilience with a 4% increase in net revenue year-over-year. Key growth drivers included the pharmaceutical and biotechnology markets, alongside solid performance in the food and environmental sectors. The company is committed to returning value to shareholders through dividends and share repurchases, and is focused on improving operating margins through operational efficiencies and strategic initiatives.
02—Key points
Key Highlights
- Agilent Technologies reported $4.2 billion in net revenue for fiscal year 2016, a 4% increase over the prior year.
- International markets accounted for a significant 70% of total net revenue.
- The company operates through three core segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab.
- Revenue growth was driven by strong performance in the pharmaceutical, biotechnology, food, and environmental markets.
- Agilent's R&D spending was $329 million in fiscal year 2016, underscoring its commitment to innovation.
- The company returned capital to shareholders through $150 million in cash dividends and significant share repurchases totaling $434 million in fiscal year 2016.
- Acquisitions of Seahorse Bioscience and iLab Solutions LLC in fiscal year 2016 aim to enhance Agilent's capabilities in cell metabolism and laboratory management.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2016, Agilent Technologies, Inc. kept $0.11.
- Revenue$4.20B100.0%
- Cost of revenue−$2.00B47.7%
- Gross profit$2.20B52.3%
- Operating costs−$1.58B37.6%
- Operating income$615.0M14.6%
- Interest, other & tax−$153.0M3.6%
- Net income$462.0M11.0%
Where FY2016 revenue went
$4.20B- Cost of revenue: $2.00B, 48% of revenue
- SG&A: $1.25B, 30% of revenue
- Net income: $462.0M, 11% of revenue
- R&D: $329.0M, 7.8% of revenue
- Interest, other & tax: $153.0M, 3.6% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2016filed December 20, 2016Financial Statements
FY2016 against FY2015
| Line item | FY2016FY2015 | Change |
|---|---|---|
| Revenue | $4.20B$4.04B | +4.1% |
| Cost of Revenue | $2.00B$2.00B | +0.4% |
| Gross Profit | $2.20B$2.04B | +7.6% |
| R&D Expenses | $329.00M$330.00M | −0.3% |
| SG&A Expenses | $1.25B$1.19B | +5.4% |
| Operating Expenses | $3.59B$3.52B | +2.0% |
| Operating Income | $615.00M$522.00M | +17.8% |
| Interest Expense | $72.00M$66.00M | +9.1% |
| Net Income | $462.00M$401.00M | +15.2% |
| EPS (Basic) | $1.42$1.20 | +18.3% |
| EPS (Diluted) | $1.40$1.20 | +16.7% |
| Shares Outstanding (Basic) | 326.00M333.00M | −2.1% |
| Shares Outstanding (Diluted) | 329.00M335.00M | −1.8% |
05—Questions
Frequently Asked Questions
What were Agilent's primary business segments in fiscal year 2016?
Agilent operated through three main business segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab.
How did Agilent perform financially in fiscal year 2016?
In fiscal year 2016, Agilent reported $4.2 billion in net revenue, representing a 4% increase compared to fiscal year 2015. Net income from continuing operations was $462 million.
What are the key markets Agilent serves?
Agilent serves critical markets including pharmaceutical, biotechnology, life science research, chemical & energy, environmental & forensics, and food.
What was the geographical revenue breakdown for Agilent in fiscal year 2016?
In fiscal year 2016, 30% of Agilent's net revenue was generated in the U.S., and 70% was generated outside the U.S. China represented approximately 20% of fiscal year 2016 revenue.
06—Continue