10-KPeriod: FY2020

AGILENT TECHNOLOGIES, INC. Annual Report, Year Ended Oct 31, 2020

Filed December 18, 2020For Securities:A

Summary

Agilent Technologies, Inc. reported for the fiscal year ended October 31, 2020, a 3% increase in net revenue to $5.339 billion, 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 million, 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 million 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.

Financial Highlights

55 data points
Beta

Revenue

$5.34B

53.1% Gross Margin

Net Income

$719.00M

13.5% Net Margin

EPS (Diluted)

$2.30

Total Assets

$9.63B

Cash & Equivalents

$1.45B

Free Cash Flow

$802.00M

Financial Statements
Beta
Revenue$5.34B
Cost of Revenue$2.50B
Gross Profit$2.84B
R&D Expenses$495.00M
SG&A Expenses$1.50B
Operating Expenses$4.49B
Operating Income$846.00M
Interest Expense$78.00M
Net Income$719.00M
EPS (Basic)$2.33
EPS (Diluted)$2.30
Shares Outstanding (Basic)309.00M
Shares Outstanding (Diluted)312.00M

Key Highlights

  • 1Net revenue increased by 3% to $5.339 billion in fiscal year 2020.
  • 2Life Sciences and Applied Markets segment revenue grew by 4%, driven by acquisitions and demand for COVID-19 related products.
  • 3Net income decreased to $719 million, impacted by the COVID-19 pandemic and a $98 million impairment charge for a sequencer development program.
  • 4Agilent spent $469 million on share repurchases during fiscal year 2020.
  • 5The company declared a quarterly dividend of $0.194 per share.
  • 6Cash and cash equivalents stood at $1.441 billion as of October 31, 2020, indicating a strong liquidity position.
  • 7The company successfully managed supply chain and operational challenges posed by the COVID-19 pandemic.

Frequently Asked Questions

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.

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.

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.

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.