01—Abstract
Summary
Summary of the 10-Q filed June 6, 2017. Cited figures are marked; the original filing is the authoritative source.
Agilent Technologies, Inc. reported a strong second quarter for fiscal year 2017, with total net revenue increasing by 8% year-over-year to $1.102 billiona.
This growth was driven by solid performance across all three segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab. Net income saw a significant increase, reaching $164 millionb ($0.50 per diluted share) compared to $91 million ($0.28 per diluted share) in the prior year's second quarter. The company generated $373 million in cash from operations for the first six months of fiscal 2017, demonstrating robust cash flow.
Agilent continues to focus on strategic growth initiatives and returning value to shareholders through dividends and share repurchases. Management expressed optimism for continued growth, particularly in the pharmaceutical and biotechnology, and diagnostics and clinical markets.
02—Key points
Key Highlights
- Total net revenue for the three months ended April 30, 2017, increased by 8% to $1.102 billion, compared to $1.019 billion in the prior year.
- Net income for the three months ended April 30, 2017, was $164 million, a significant increase from $91 million in the same period last year.
- Diluted earnings per share rose to $0.50 for the quarter, up from $0.28 in the prior year's second quarter.
- All three reporting segments (Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab) showed revenue growth year-over-year.
- Net cash provided by operating activities for the six months ended April 30, 2017, was $373 million, an increase from $365 million in the prior year.
- The company repurchased approximately 1.6 million shares for $83 million during the three months ended April 30, 2017, as part of its ongoing share repurchase program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2017, Agilent Technologies, Inc. kept $0.15.
- Revenue$1.10B100.0%
- Cost of revenue−$510.0M46.3%
- Gross profit$592.0M53.7%
- Operating costs−$391.0M35.5%
- Operating income$201.0M18.2%
- Interest, other & tax−$37.0M3.4%
- Net income$164.0M14.9%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2017filed June 6, 2017Financial Statements
Q2 FY2017 against Q2 FY2016
| Line item | Q2 FY2017Q2 FY2016 | Change |
|---|---|---|
| Revenue | $1.10B$1.02B | +8.1% |
| Cost of Revenue | $510.00M$489.00M | +4.3% |
| Gross Profit | $592.00M$530.00M | +11.7% |
| R&D Expenses | $84.00M$81.00M | +3.7% |
| SG&A Expenses | $307.00M$318.00M | −3.5% |
| Operating Expenses | $901.00M$888.00M | +1.5% |
| Operating Income | $201.00M$131.00M | +53.4% |
| Interest Expense | $20.00M$18.00M | +11.1% |
| Net Income | $164.00M$91.00M | +80.2% |
| EPS (Basic) | $0.51$0.28 | +82.1% |
| EPS (Diluted) | $0.50$0.28 | +78.6% |
| Shares Outstanding (Basic) | 321.00M326.00M | −1.5% |
| Shares Outstanding (Diluted) | 325.00M328.00M | −0.9% |
05—Questions
Frequently Asked Questions
What was the overall revenue performance for Agilent Technologies in this quarter?
Agilent Technologies reported a total net revenue of $1.102 billion for the three months ended April 30, 2017, representing an 8% increase compared to the same period last year. This growth was consistent across all its reporting segments.
How did Agilent's profitability change compared to the previous year?
Profitability significantly improved. Net income for the quarter was $164 million, a substantial increase from $91 million in the prior year's second quarter. Diluted earnings per share also rose to $0.50 from $0.28.
What is the company's cash flow situation?
Agilent demonstrated strong cash flow generation, with net cash provided by operating activities totaling $373 million for the six months ended April 30, 2017, up from $365 million in the comparable period last year.
What are the key drivers of revenue growth in the different segments?
Growth was driven by strong performance in the pharmaceutical and biotechnology markets for Life Sciences and Applied Markets. The Diagnostics and Genomics segment saw strength in nucleic acid solutions, pathology, and companion diagnostics. Agilent CrossLab's revenue increased across most key markets, led by services and consumables.
06—Continue