10-QPeriod: Q3 FY2017

AGILENT TECHNOLOGIES, INC. Quarterly Report for Q3 Ended Jul 31, 2017

Filed September 6, 2017For Securities:A

Summary

Agilent Technologies, Inc. reported solid financial performance for the nine months ended July 31, 2017, demonstrating revenue growth across its key business segments and an improvement in profitability. Total net revenue increased by 6% year-over-year to $3.3 billion, driven by a 5% increase in Life Sciences and Applied Markets, a 9% increase in Diagnostics and Genomics, and a 7% increase in Agilent CrossLab. Net income saw a significant rise to $507 million, up from $336 million in the prior year period, reflecting improved gross margins and operational efficiencies. The company's balance sheet remains strong, with cash and cash equivalents totaling $2.56 billion as of July 31, 2017. Agilent continues to focus on returning value to shareholders through dividends and share repurchases, while also investing in research and development to fuel future growth. The company made strategic acquisitions of Multiplicom NV and Cobalt Light Systems, which are expected to contribute to its diagnostics and applied markets businesses.

Financial Highlights

58 data points
Beta

Revenue

$1.11B

53.5% Gross Margin

Net Income

$175.00M

15.7% Net Margin

EPS (Diluted)

$0.54

Total Assets

$8.26B

Cash & Equivalents

$2.56B

Free Cash Flow

$185.00M

Financial Statements
Beta
Revenue$1.11B
Cost of Revenue$518.00M
Gross Profit$596.00M
R&D Expenses$87.00M
SG&A Expenses$308.00M
Operating Expenses$913.00M
Operating Income$201.00M
Interest Expense$19.00M
Net Income$175.00M
EPS (Basic)$0.55
EPS (Diluted)$0.54
Shares Outstanding (Basic)321.00M
Shares Outstanding (Diluted)326.00M

Key Highlights

  • 1Total net revenue increased by 6% to $3.3 billion for the nine months ended July 31, 2017, compared to the prior year period.
  • 2Net income grew significantly to $507 million for the nine months ended July 31, 2017, up from $336 million in the prior year.
  • 3Life Sciences and Applied Markets revenue grew 5%, Diagnostics and Genomics revenue grew 9%, and Agilent CrossLab revenue grew 7% for the nine months ended July 31, 2017.
  • 4Gross margin improved by 2 percentage points to 53.7% for the nine months ended July 31, 2017.
  • 5Operating margin expanded by 5 percentage points to 18.5% for the nine months ended July 31, 2017.
  • 6Cash and cash equivalents stood at $2.56 billion as of July 31, 2017, indicating strong liquidity.
  • 7The company completed two strategic acquisitions: Multiplicom NV for $72 million and Cobalt Light Systems for $53 million.

Frequently Asked Questions

Agilent Technologies demonstrated strong performance with a 6% increase in net revenue to $3.3 billion for the nine months ended July 31, 2017, and a substantial rise in net income to $507 million. Profitability improved significantly, with gross margin increasing to 53.7% and operating margin rising to 18.5%.

All three reportable segments showed revenue growth. Life Sciences and Applied Markets grew by 5%, Diagnostics and Genomics by 9%, and Agilent CrossLab by 7% for the nine months ended July 31, 2017. This indicates broad-based demand for Agilent's offerings.

Agilent maintains a strong financial position, with $2.56 billion in cash and cash equivalents as of July 31, 2017, indicating robust liquidity. The company generated $601 million in cash from operating activities during the nine-month period, sufficient to cover investments, financing activities, and shareholder returns.

Agilent completed two key acquisitions: Multiplicom NV for $72 million, a European diagnostics company, and Cobalt Light Systems for $53 million, a provider of Raman spectroscopic instruments. These acquisitions are expected to bolster the company's presence in its target markets.