01—Abstract
Summary
Summary of the 10-K filed December 18, 2020. Cited figures are marked; the original filing is the authoritative source.
Agilent Technologies, Inc. reported for the fiscal year ended October 31, 2020, a 3% increase in net revenue to $5.339 billiona, driven by a 4% rise in its Life Sciences and Applied Markets segment.
This growth occurred despite the ongoing COVID-19 pandemic, which presented challenges such as unpredictable demand shifts, supply chain disruptions, and impacts on customer site access. The company also noted a 2% increase in its Diagnostics and Genomics business and a 3% increase in its Agilent CrossLab business. The company's net income for the year was $719 millionb, a decrease from the prior year, primarily due to the impact of the pandemic and an impairment charge of $98 million related to the closure of its sequencer development program.
Agilent continued its commitment to returning capital to shareholders through share repurchases, with $469 millionc spent in 2020, and declared a quarterly dividend of $0.194 per share. The company maintains a strong liquidity position with $1.441 billion in cash and cash equivalents.
02—Key points
Key Highlights
- Net revenue increased by 3% to $5.339 billion in fiscal year 2020.
- Life Sciences and Applied Markets segment revenue grew by 4%, driven by acquisitions and demand for COVID-19 related products.
- Net income decreased to $719 million, impacted by the COVID-19 pandemic and a $98 million impairment charge for a sequencer development program.
- Agilent spent $469 million on share repurchases during fiscal year 2020.
- The company declared a quarterly dividend of $0.194 per share.
- Cash and cash equivalents stood at $1.441 billion as of October 31, 2020, indicating a strong liquidity position.
- The company successfully managed supply chain and operational challenges posed by the COVID-19 pandemic.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2020, Agilent Technologies, Inc. kept $0.13.
- Revenue$5.34B100.0%
- Cost of revenue−$2.50B46.9%
- Gross profit$2.84B53.1%
- Operating costs−$1.99B37.3%
- Operating income$846.0M15.8%
- Interest, other & tax−$127.0M2.4%
- Net income$719.0M13.5%
Where FY2020 revenue went
$5.34B- Cost of revenue: $2.50B, 47% of revenue
- SG&A: $1.50B, 28% of revenue
- Net income: $719.0M, 13% of revenue
- R&D: $495.0M, 9.3% of revenue
- Interest, other & tax: $127.0M, 2.4% of revenue
Kept 13% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2020filed December 18, 2020Financial Statements
FY2020 against FY2019
| Line item | FY2020FY2019 | Change |
|---|---|---|
| Revenue | $5.34B$5.16B | +3.4% |
| Cost of Revenue | $2.50B$2.36B | +6.1% |
| Gross Profit | $2.84B$2.81B | +1.1% |
| R&D Expenses | $495.00M$404.00M | +22.5% |
| SG&A Expenses | $1.50B$1.46B | +2.5% |
| Operating Expenses | $4.49B$4.22B | +6.4% |
| Operating Income | $846.00M$941.00M | −10.1% |
| Interest Expense | $78.00M$74.00M | +5.4% |
| Net Income | $719.00M$1.07B | −32.9% |
| EPS (Basic) | $2.33$3.41 | −31.7% |
| EPS (Diluted) | $2.30$3.37 | −31.8% |
| Shares Outstanding (Basic) | 309.00M314.00M | −1.6% |
| Shares Outstanding (Diluted) | 312.00M318.00M | −1.9% |
05—Questions
Frequently Asked Questions
How did the COVID-19 pandemic affect Agilent's financial performance in fiscal year 2020?
The COVID-19 pandemic caused unpredictable demand shifts, supply chain disruptions, and impacts on customer site access. While some businesses saw increased demand for COVID-19 testing and research products, others experienced declines due to reduced elective medical procedures and laboratory closures. Despite these challenges, Agilent reported overall revenue growth.
What was the primary driver of the decrease in net income in fiscal year 2020?
The decrease in net income was primarily attributed to the negative impacts of the COVID-19 pandemic on certain business lines and increased costs, including a significant $98 million impairment charge related to the shutdown of its sequencer development program.
How is Agilent returning capital to shareholders?
Agilent is returning capital to shareholders through share repurchases and dividends. In fiscal year 2020, the company repurchased $469 million of its common stock and declared a quarterly dividend of $0.194 per share.
What is Agilent's financial position at the end of fiscal year 2020?
Agilent ended fiscal year 2020 with a strong liquidity position, holding $1.441 billion in cash and cash equivalents. The company stated that its cash, cash generated from operations, and access to capital markets were expected to satisfy its liquidity requirements for at least the next twelve months.
06—Continue