10-QPeriod: Q2 FY2017

AGILENT TECHNOLOGIES, INC. Quarterly Report for Q2 Ended Apr 30, 2017

Filed June 6, 2017For Securities:A

Summary

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 billion. 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 million ($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.

Financial Highlights

58 data points
Beta

Revenue

$1.10B

53.7% Gross Margin

Net Income

$164.00M

14.9% Net Margin

EPS (Diluted)

$0.50

Total Assets

$8.02B

Cash & Equivalents

$2.39B

Free Cash Flow

$214.00M

Financial Statements
Beta
Revenue$1.10B
Cost of Revenue$510.00M
Gross Profit$592.00M
R&D Expenses$84.00M
SG&A Expenses$307.00M
Operating Expenses$901.00M
Operating Income$201.00M
Interest Expense$20.00M
Net Income$164.00M
EPS (Basic)$0.51
EPS (Diluted)$0.50
Shares Outstanding (Basic)321.00M
Shares Outstanding (Diluted)325.00M

Key Highlights

  • 1Total 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.
  • 2Net income for the three months ended April 30, 2017, was $164 million, a significant increase from $91 million in the same period last year.
  • 3Diluted earnings per share rose to $0.50 for the quarter, up from $0.28 in the prior year's second quarter.
  • 4All three reporting segments (Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab) showed revenue growth year-over-year.
  • 5Net 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.
  • 6The 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.

Frequently Asked Questions

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.

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.

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.

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.