10-QPeriod: Q3 FY2016

AGILENT TECHNOLOGIES, INC. Quarterly Report for Q3 Ended Jul 31, 2016

Filed September 7, 2016For Securities:A

Summary

Agilent Technologies, Inc. reported solid performance for the nine months ended July 31, 2016, with total net revenue increasing by 3% to $3,091 million compared to the prior year. This growth was driven by strong performance in the Diagnostics and Genomics segment (+7%) and Agilent CrossLab (+6%), while the Life Sciences and Applied Markets segment remained flat. Net income from continuing operations rose to $336 million from $298 million in the same period last year. The company also generated significant cash flow from operations ($559 million), underscoring its financial health. Agilent continued its commitment to shareholder returns through dividends and share repurchases, with $112 million in dividends paid and $290 million in shares repurchased during the nine-month period. Recent acquisitions, including Seahorse Bioscience and iLab Solutions, are expected to contribute to future growth. Financially, Agilent maintained a strong balance sheet with $2,199 million in cash and cash equivalents as of July 31, 2016. The company also made progress on operational efficiencies and strategic initiatives, including a focus on improving operating margins. While facing some currency headwinds, Agilent demonstrated resilience and strategic execution, positioning itself for continued growth in its key markets.

Financial Highlights

57 data points
Beta

Revenue

$1.04B

51.9% Gross Margin

Net Income

$124.00M

11.9% Net Margin

EPS (Diluted)

$0.38

Total Assets

$7.73B

Cash & Equivalents

$2.20B

Free Cash Flow

$170.00M

Financial Statements
Beta
Revenue$1.04B
Cost of Revenue$502.00M
Gross Profit$542.00M
R&D Expenses$86.00M
SG&A Expenses$310.00M
Operating Expenses$898.00M
Operating Income$146.00M
Interest Expense$17.00M
Net Income$124.00M
EPS (Basic)$0.38
EPS (Diluted)$0.38
Shares Outstanding (Basic)325.00M
Shares Outstanding (Diluted)328.00M

Key Highlights

  • 1Total net revenue increased by 3% to $3,091 million for the nine months ended July 31, 2016.
  • 2Net income from continuing operations increased to $336 million for the nine months ended July 31, 2016, up from $298 million in the prior year.
  • 3Strong revenue growth was observed in the Diagnostics and Genomics segment (+7%) and Agilent CrossLab segment (+6%).
  • 4Operating cash flow remained robust at $559 million for the nine months ended July 31, 2016.
  • 5Agilent returned value to shareholders through $112 million in dividends and $290 million in share repurchases during the nine months ended July 31, 2016.
  • 6The company completed the acquisition of Seahorse Bioscience in November 2015 and iLab Solutions in August 2016, integrating them to drive future growth.
  • 7Cash and cash equivalents stood strong at $2,199 million as of July 31, 2016, indicating solid liquidity.

Frequently Asked Questions

For the nine months ended July 31, 2016, Agilent Technologies reported a 3% increase in total net revenue to $3,091 million, compared to $3,003 million in the same period last year. This growth was primarily driven by the Diagnostics and Genomics segment and Agilent CrossLab segment.

Net income from continuing operations increased to $336 million for the nine months ended July 31, 2016, up from $298 million in the prior year. This improvement reflects better operational performance and revenue growth across key segments.

Agilent demonstrated strong operating cash flow, generating $559 million for the nine months ended July 31, 2016. The company maintained a healthy liquidity position with $2,199 million in cash and cash equivalents as of July 31, 2016.

Agilent continues to prioritize shareholder returns through dividends and share repurchases. During the nine months ended July 31, 2016, the company paid $112 million in dividends and repurchased approximately $290 million of its common stock. Agilent has an ongoing share repurchase program with $850 million remaining authorization as of July 31, 2016.