01—Abstract
Summary
Summary of the 10-K filed December 21, 2017. Cited figures are marked; the original filing is the authoritative source.
Agilent Technologies, Inc. reported solid revenue growth in fiscal year 2017, with total net revenue increasing by 6% to $4.47 billiona.
This growth was driven by strong performance across its three segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab. The company saw particularly robust growth in its Diagnostics and Genomics segment (up 9%b) and Agilent CrossLab segment (up 8%), indicating increasing demand for its solutions in healthcare and lab services.
Looking ahead, Agilent expressed optimism for growth opportunities, especially in the diagnostics market, while also acknowledging potential macroeconomic and political uncertainties that might moderate revenue projections in certain areas for fiscal year 2018. The company continues to focus on operational improvements and returning value to shareholders through dividends and share repurchases, demonstrating a balanced approach to growth and shareholder returns.
02—Key points
Key Highlights
- Agilent Technologies reported a 6% year-over-year increase in total net revenue for fiscal year 2017, reaching $4.47 billion.
- The Diagnostics and Genomics segment showed strong growth, increasing revenue by 9% compared to the prior year.
- The Agilent CrossLab segment also demonstrated solid growth, with an 8% revenue increase year-over-year.
- The company's Life Sciences and Applied Markets segment grew by 5% in fiscal year 2017.
- Agilent completed two acquisitions in fiscal year 2017: Multiplicom NV for $72 million and Cobalt Light Systems for $53 million.
- The company maintained effective internal controls over financial reporting.
- Agilent announced plans to repurchase up to $610 million of its common stock under its 2015 repurchase program as of October 31, 2017.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2017, Agilent Technologies, Inc. kept $0.15.
- Revenue$4.47B100.0%
- Cost of revenue−$2.06B46.1%
- Gross profit$2.41B53.9%
- Operating costs−$1.60B35.8%
- Operating income$807.0M18.0%
- Interest, other & tax−$123.0M2.8%
- Net income$684.0M15.3%
Where FY2017 revenue went
$4.47B- Cost of revenue: $2.06B, 46% of revenue
- SG&A: $1.25B, 28% of revenue
- Net income: $684.0M, 15% of revenue
- R&D: $341.0M, 7.6% of revenue
- Interest, other & tax: $123.0M, 2.8% of revenue
Kept 15% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2017filed December 21, 2017Financial Statements
FY2017 against FY2016
| Line item | FY2017FY2016 | Change |
|---|---|---|
| Revenue | $4.47B$4.20B | +6.4% |
| Cost of Revenue | $2.06B$2.00B | +2.9% |
| Gross Profit | $2.41B$2.20B | +9.6% |
| R&D Expenses | $341.00M$329.00M | +3.6% |
| SG&A Expenses | $1.25B$1.25B | −0.2% |
| Operating Expenses | $3.67B$3.59B | +2.2% |
| Operating Income | $807.00M$615.00M | +31.2% |
| Interest Expense | $79.00M$72.00M | +9.7% |
| Net Income | $684.00M$462.00M | +48.1% |
| EPS (Basic) | $2.12$1.42 | +49.3% |
| EPS (Diluted) | $2.10$1.40 | +50.0% |
| Shares Outstanding (Basic) | 322.00M326.00M | −1.2% |
| Shares Outstanding (Diluted) | 326.00M329.00M | −0.9% |
05—Questions
Frequently Asked Questions
What were Agilent's main revenue drivers in fiscal year 2017?
Agilent's revenue growth in fiscal year 2017 was driven by strong performance across all three of its business segments: Life Sciences and Applied Markets (up 5%), Diagnostics and Genomics (up 9%), and Agilent CrossLab (up 8%). The company noted solid growth in pharmaceutical and biotechnology markets within Life Sciences, as well as strong performance in companion diagnostics and pathology businesses within Diagnostics and Genomics.
What is Agilent's outlook for fiscal year 2018?
Agilent expressed optimism for growth opportunities, particularly in the diagnostics market. However, the company remains cautious about revenue projections for most of fiscal year 2018 due to macroeconomic and political uncertainties. They anticipate a slight moderation in revenue growth for the pharmaceutical and biotechnology markets and lower revenue growth in the chemical and energy market compared to fiscal year 2017.
How is Agilent managing its cash and capital resources?
As of October 31, 2017, Agilent held $2.68 billion in cash and cash equivalents, with a significant portion held by foreign subsidiaries. The company believes its cash position, cash generated from operations, and access to credit markets will satisfy its liquidity requirements for at least the next twelve months. Agilent also plans to continue returning cash to shareholders through dividends and share repurchases.
What significant acquisitions did Agilent make in fiscal year 2017?
In fiscal year 2017, Agilent completed two acquisitions: Multiplicom NV, a European diagnostics company, for approximately $72 million, and Cobalt Light Systems, a provider of Raman spectroscopic instruments, for approximately $53 million. These acquisitions are expected to enhance Agilent's offerings in the diagnostics and applied markets.
06—Continue