01—Abstract
Summary
Summary of the 10-K filed December 20, 2023. Cited figures are marked; the original filing is the authoritative source.
Agilent Technologies, Inc. reported net revenue of $6.833 billiona for the fiscal year ended October 31, 2023, a slight decrease compared to the prior year, primarily due to weaker demand in China and pressures on customer capital expenditures impacting the Life Sciences and Applied Markets segment.
However, the Diagnostics and Genomics segment saw a slight increase, and the Agilent CrossLab services business demonstrated robust growth of 8%. The company incurred significant asset impairment charges of $270 millionb related to the exit of its Resolution Bioscience business, which impacted net income, though overall net income remained stable year-over-year at $1.240 billion. Agilent continued its focus on capital allocation, repurchasing $476 million of its stock under its 2023 repurchase program and paying $265 million in dividends.
The company also announced a new restructuring plan in fiscal year 2023, involving a workforce reduction and facility consolidation, expected to yield $80 millionc in annual cost savings. Looking ahead, Agilent anticipates a challenging macroeconomic environment but remains optimistic about long-term growth opportunities across its key end markets.
02—Key points
Key Highlights
- Net revenue for fiscal year 2023 was $6.833 billion, a slight decrease from $6.848 billion in fiscal year 2022, impacted by foreign currency movements and weaker demand in certain markets.
- The company recorded a significant $270 million asset impairment charge related to the exit of its Resolution Bioscience business.
- Agilent CrossLab, the services segment, showed strong growth with an 8% increase in revenue year-over-year, reaching $1.568 billion.
- Net income for fiscal year 2023 was $1.240 billion, largely consistent with the $1.254 billion reported in fiscal year 2022.
- The company initiated a restructuring plan in fiscal year 2023, including a workforce reduction of approximately 400 employees, expecting $80 million in annual cost savings.
- Agilent continued its share repurchase program, buying back $476 million of stock, and paid $265 million in dividends, demonstrating commitment to shareholder returns.
- Investments in property, plant, and equipment were $298 million, with significant planned expansion for nucleic acid-based therapeutics production in Frederick, Colorado.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Agilent Technologies, Inc. kept $0.18.
- Revenue$6.83B100.0%
- Cost of revenue−$3.37B49.3%
- Gross profit$3.46B50.7%
- Operating costs−$2.12B31.0%
- Operating income$1.35B19.8%
- Interest, other & tax−$110.0M1.6%
- Net income$1.24B18.1%
Where FY2023 revenue went
$6.83B- Cost of revenue: $3.37B, 49% of revenue
- SG&A: $1.63B, 24% of revenue
- Net income: $1.24B, 18% of revenue
- R&D: $481.0M, 7.0% of revenue
- Interest, other & tax: $110.0M, 1.6% of revenue
Kept 18% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed December 20, 2023Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $6.83B$6.85B | −0.2% |
| Cost of Revenue | $3.37B$3.13B | +7.7% |
| Gross Profit | $3.46B$3.72B | −6.9% |
| R&D Expenses | $481.00M$467.00M | +3.0% |
| SG&A Expenses | $1.63B$1.64B | −0.2% |
| Operating Expenses | $5.48B$5.23B | +4.8% |
| Operating Income | $1.35B$1.62B | −16.6% |
| Interest Expense | $95.00M$84.00M | +13.1% |
| Net Income | $1.24B$1.25B | −1.1% |
| EPS (Basic) | $4.22$4.19 | +0.7% |
| EPS (Diluted) | $4.19$4.18 | +0.2% |
| Shares Outstanding (Basic) | 294.00M299.00M | −1.7% |
| Shares Outstanding (Diluted) | 296.00M300.00M | −1.3% |
05—Questions
Frequently Asked Questions
What was the overall financial performance of Agilent in fiscal year 2023?
Agilent Technologies reported a net revenue of $6.833 billion for fiscal year 2023, which was a slight decrease compared to $6.848 billion in fiscal year 2022. Net income was $1.240 billion, a marginal decrease from $1.254 billion in the prior year. The company experienced a significant asset impairment charge related to the exit of its Resolution Bioscience business.
Which business segments performed best and worst in fiscal year 2023?
The Agilent CrossLab business showed the strongest performance with an 8% revenue increase. The Diagnostics and Genomics segment saw a 1% increase in revenue. The Life Sciences and Applied Markets segment experienced a 4% decrease in revenue, primarily due to weaker demand in China and pressure on customer capital expenditures.
What is Agilent's outlook for the coming year?
Agilent anticipates a challenging macroeconomic environment, particularly in China, and continued pressure on customer capital expenditures in the near term. However, the company remains optimistic about long-term growth opportunities across all its key end markets and expects to continue mitigating inflationary pressures through targeted pricing and cost-saving strategies.
How is Agilent managing its costs and capital allocation?
Agilent initiated a restructuring plan in fiscal year 2023, involving workforce reductions and facility consolidation, which is expected to generate $80 million in annual cost savings. The company continued its commitment to shareholder returns through a $2.0 billion share repurchase program, having repurchased $476 million in fiscal year 2023, and paid $265 million in dividends.
06—Continue