10-QPeriod: Q1 FY2017

AGILENT TECHNOLOGIES, INC. Quarterly Report for Q1 Ended Jan 31, 2017

Filed March 8, 2017For Securities:A

Summary

Agilent Technologies, Inc. reported a solid performance for the three months ended January 31, 2017, with total net revenue increasing by 4% year-over-year to $1,067 million. This growth was driven by a 3% increase in Products revenue and a 7% increase in Services and other revenue. Net income rose significantly to $168 million, up from $121 million in the prior year period, leading to diluted EPS of $0.52. The company successfully managed its expenses, with selling, general, and administrative costs decreasing by 5%, contributing to a notable expansion in operating margin by 4 percentage points to 19.3%. Key drivers of performance included growth across all three business segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab, with revenue increases of 3%, 4%, and 6%, respectively. The company also completed the acquisition of Multiplicom NV for approximately $72 million, strengthening its Diagnostics and Genomics segment. Agilent continues to prioritize shareholder returns, repurchasing $111 million in shares during the quarter and paying a dividend of $0.132 per share. The company maintains a strong liquidity position with $2,241 million in cash and cash equivalents.

Financial Highlights

58 data points
Beta

Revenue

$1.07B

53.8% Gross Margin

Net Income

$168.00M

15.7% Net Margin

EPS (Diluted)

$0.52

Total Assets

$7.87B

Cash & Equivalents

$2.24B

Free Cash Flow

$84.00M

Financial Statements
Beta
Revenue$1.07B
Cost of Revenue$493.00M
Gross Profit$574.00M
R&D Expenses$79.00M
SG&A Expenses$289.00M
Operating Expenses$861.00M
Operating Income$206.00M
Interest Expense$20.00M
Net Income$168.00M
EPS (Basic)$0.52
EPS (Diluted)$0.52
Shares Outstanding (Basic)322.00M
Shares Outstanding (Diluted)326.00M

Key Highlights

  • 1Total net revenue increased by 4% to $1,067 million, driven by growth in both Products and Services.
  • 2Net income saw a substantial increase of 39% to $168 million, with diluted EPS rising to $0.52.
  • 3Operating margin improved significantly by 4 percentage points to 19.3%, indicating effective cost management.
  • 4All three business segments (Life Sciences and Applied Markets, Diagnostics and Genomics, Agilent CrossLab) reported revenue growth.
  • 5Acquisition of Multiplicom NV completed, bolstering the Diagnostics and Genomics segment.
  • 6Strong cash flow from operations of $116 million.
  • 7Shareholder returns remained a focus with $111 million in share repurchases and a dividend payment of $0.132 per share.

Frequently Asked Questions

Agilent Technologies reported a 4% increase in total net revenue for the three months ended January 31, 2017, reaching $1,067 million compared to $1,028 million in the same period of the prior year. This growth was supported by increases in both product and service revenues.

Profitability saw a significant improvement. Net income rose by 39% to $168 million, and diluted earnings per share increased to $0.52 from $0.36 in the prior year quarter. This was driven by revenue growth and effective cost management, leading to a 4 percentage point increase in operating margin to 19.3%.

All three segments contributed to revenue growth: Life Sciences and Applied Markets increased by 3%, Diagnostics and Genomics by 4%, and Agilent CrossLab by 6%. This broad-based growth reflects demand across Agilent's diverse portfolio.

Yes, Agilent completed the acquisition of Multiplicom NV on January 20, 2017, for approximately $72 million in cash. Multiplicom is a European diagnostics company focused on genetic testing technology, which is expected to strengthen Agilent's Diagnostics and Genomics segment.