01—Abstract
Summary
Summary of the 10-Q filed March 8, 2017. Cited figures are marked; the original filing is the authoritative source.
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 milliona.
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 millionb, 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 millionc, strengthening its Diagnostics and Genomics segment.
Agilent continues to prioritize shareholder returns, repurchasing $111 milliond 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.
02—Key points
Key Highlights
- Total net revenue increased by 4% to $1,067 million, driven by growth in both Products and Services.
- Net income saw a substantial increase of 39% to $168 million, with diluted EPS rising to $0.52.
- Operating margin improved significantly by 4 percentage points to 19.3%, indicating effective cost management.
- All three business segments (Life Sciences and Applied Markets, Diagnostics and Genomics, Agilent CrossLab) reported revenue growth.
- Acquisition of Multiplicom NV completed, bolstering the Diagnostics and Genomics segment.
- Strong cash flow from operations of $116 million.
- Shareholder returns remained a focus with $111 million in share repurchases and a dividend payment of $0.132 per share.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2017, Agilent Technologies, Inc. kept $0.16.
- Revenue$1.07B100.0%
- Cost of revenue−$493.0M46.2%
- Gross profit$574.0M53.8%
- Operating costs−$368.0M34.5%
- Operating income$206.0M19.3%
- Interest, other & tax−$38.0M3.6%
- Net income$168.0M15.7%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2017filed March 8, 2017Financial Statements
Q1 FY2017 against Q1 FY2016
| Line item | Q1 FY2017Q1 FY2016 | Change |
|---|---|---|
| Revenue | $1.07B$1.03B | +3.8% |
| Cost of Revenue | $493.00M$491.00M | +0.4% |
| Gross Profit | $574.00M$537.00M | +6.9% |
| R&D Expenses | $79.00M$78.00M | +1.3% |
| SG&A Expenses | $289.00M$304.00M | −4.9% |
| Operating Expenses | $861.00M$873.00M | −1.4% |
| Operating Income | $206.00M$155.00M | +32.9% |
| Interest Expense | $20.00M$18.00M | +11.1% |
| Net Income | $168.00M$123.00M | +36.6% |
| EPS (Basic) | $0.52$0.37 | +40.5% |
| EPS (Diluted) | $0.52$0.36 | +44.4% |
| Shares Outstanding (Basic) | 322.00M329.00M | −2.1% |
| Shares Outstanding (Diluted) | 326.00M332.00M | −1.8% |
05—Questions
Frequently Asked Questions
What was the overall revenue performance for Agilent Technologies in the reported quarter?
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.
How did the company's profitability change compared to the previous year?
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%.
What were the key growth drivers for the company's different business segments?
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.
Did Agilent make any significant acquisitions during the quarter?
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.
06—Continue