01—Abstract
Summary
Summary of the 10-K filed December 19, 2019. Cited figures are marked; the original filing is the authoritative source.
Agilent Technologies, Inc. reported solid performance in its fiscal year ended October 31, 2019.
The company, a global leader in life sciences, diagnostics, and applied chemical markets, saw a 5% increase in net revenue to $5.163 billiona, driven by growth in its Diagnostics and Genomics and Agilent CrossLab segments, which both increased by 8%. The Life Sciences and Applied Markets segment experienced a more modest 1% revenue increase. Acquisitions played a significant role in the company's growth, with the notable acquisitions of ACEA Biosciences and BioTek contributing positively to results, particularly in the cell analysis and life science instrumentation markets.
Financially, Agilent demonstrated strong operational execution. While net income was significantly impacted by discrete tax benefits in 2019 ($1.071 billionb) and a tax charge in 2018, the underlying operational performance was robust.
The company continued its commitment to shareholder returns through share repurchases, buying back approximately $723 millionc of its stock under its new repurchase program, and by declaring dividends. Agilent maintains a healthy balance sheet with $1.382 billion in cash and cash equivalents, supporting its ongoing investments in R&D and strategic acquisitions.
02—Key points
Key Highlights
- Agilent Technologies reported a 5% year-over-year increase in net revenue, reaching $5.163 billion for the fiscal year ended October 31, 2019.
- The Diagnostics and Genomics segment and the Agilent CrossLab segment both achieved 8% revenue growth, indicating strong demand in these areas.
- Acquisitions, notably BioTek and ACEA Biosciences, contributed to revenue growth and expanded Agilent's presence in key markets like cell analysis and life science instrumentation.
- The company maintained a solid financial position with $1.382 billion in cash and cash equivalents as of October 31, 2019.
- Agilent actively returned capital to shareholders through significant share repurchases totaling $723 million during the year and consistent dividend payments.
- Operating expenses, including R&D and SG&A, saw increases, partly due to integration costs from acquisitions and increased wages, but overall operating margin remained stable.
- The company is focused on differentiating its product solutions, enhancing customer experience, and achieving continued earnings growth in the upcoming fiscal year.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2019, Agilent Technologies, Inc. kept $0.21.
- Revenue$5.16B100.0%
- Cost of revenue−$2.36B45.7%
- Gross profit$2.81B54.3%
- Operating costs−$1.86B36.1%
- Operating income$941.0M18.2%
- Interest, other & tax$130.0M2.5%
- Net income$1.07B20.7%
Where FY2019 revenue went
$5.16B- Cost of revenue: $2.36B, 46% of revenue
- SG&A: $1.46B, 28% of revenue
- Operating income: $941.0M, 18% of revenue
- R&D: $404.0M, 7.8% of revenue
Kept 18% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2019filed December 19, 2019Financial Statements
FY2019 against FY2018
| Line item | FY2019FY2018 | Change |
|---|---|---|
| Revenue | $5.16B$4.91B | +5.1% |
| Cost of Revenue | $2.36B$2.23B | +5.6% |
| Gross Profit | $2.81B$2.68B | +4.7% |
| R&D Expenses | $404.00M$387.00M | +4.4% |
| SG&A Expenses | $1.46B$1.39B | +5.1% |
| Operating Expenses | $4.22B$4.01B | +5.3% |
| Operating Income | $941.00M$904.00M | +4.1% |
| Interest Expense | $74.00M$75.00M | −1.3% |
| Net Income | $1.07B$316.00M | +238.9% |
| EPS (Basic) | $3.41$0.98 | +248.0% |
| EPS (Diluted) | $3.37$0.97 | +247.4% |
| Shares Outstanding (Basic) | 314.00M321.00M | −2.2% |
| Shares Outstanding (Diluted) | 318.00M325.00M | −2.2% |
05—Questions
Frequently Asked Questions
What were the main drivers of Agilent's revenue growth in fiscal year 2019?
Agilent's revenue growth in fiscal year 2019 was primarily driven by increases in its Diagnostics and Genomics and Agilent CrossLab segments, both of which saw 8% revenue growth. Acquisitions, specifically BioTek and ACEA Biosciences, also played a significant role, bolstering the company's offerings in cell analysis and life science instrumentation.
How did Agilent manage its financial resources and shareholder returns?
Agilent maintained a strong financial position with $1.382 billion in cash and cash equivalents. The company actively managed its capital by repurchasing approximately $723 million of its common stock under a new share repurchase program and by continuing to pay dividends to shareholders, demonstrating a commitment to returning value to its investors.
What impact did acquisitions have on Agilent's financial performance in 2019?
Acquisitions, notably BioTek and ACEA Biosciences, had a favorable impact on Agilent's revenue growth and market position. While these acquisitions contributed to increased operating expenses, such as integration costs and higher wages, they are strategically important for expanding Agilent's capabilities, particularly in the life sciences and diagnostics sectors.
What is Agilent's outlook for fiscal year 2020?
Agilent expressed optimism for fiscal year 2020, anticipating continued growth driven by its product portfolio, recent acquisitions, and strategic focus on enhancing customer experience. The company expects foreign currency movements to have a negative impact on revenue but anticipates that acquisition contributions will help offset this effect. Agilent remains focused on a balanced capital allocation strategy involving dividends and share repurchases.
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