10-KPeriod: FY2017

AGILENT TECHNOLOGIES, INC. Annual Report, Year Ended Oct 31, 2017

Filed December 21, 2017For Securities:A

Summary

Agilent Technologies, Inc. reported solid revenue growth in fiscal year 2017, with total net revenue increasing by 6% to $4.47 billion. 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%) 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.

Financial Highlights

57 data points
Beta

Revenue

$4.47B

53.9% Gross Margin

Net Income

$684.00M

15.3% Net Margin

EPS (Diluted)

$2.10

Total Assets

$8.43B

Cash & Equivalents

$2.68B

Free Cash Flow

$713.00M

Financial Statements
Beta
Revenue$4.47B
Cost of Revenue$2.06B
Gross Profit$2.41B
R&D Expenses$341.00M
SG&A Expenses$1.25B
Operating Expenses$3.67B
Operating Income$807.00M
Interest Expense$79.00M
Net Income$684.00M
EPS (Basic)$2.12
EPS (Diluted)$2.10
Shares Outstanding (Basic)322.00M
Shares Outstanding (Diluted)326.00M

Key Highlights

  • 1Agilent Technologies reported a 6% year-over-year increase in total net revenue for fiscal year 2017, reaching $4.47 billion.
  • 2The Diagnostics and Genomics segment showed strong growth, increasing revenue by 9% compared to the prior year.
  • 3The Agilent CrossLab segment also demonstrated solid growth, with an 8% revenue increase year-over-year.
  • 4The company's Life Sciences and Applied Markets segment grew by 5% in fiscal year 2017.
  • 5Agilent completed two acquisitions in fiscal year 2017: Multiplicom NV for $72 million and Cobalt Light Systems for $53 million.
  • 6The company maintained effective internal controls over financial reporting.
  • 7Agilent announced plans to repurchase up to $610 million of its common stock under its 2015 repurchase program as of October 31, 2017.

Frequently Asked Questions

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.

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.

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.

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.