01—Abstract
Summary
Summary of the 10-Q filed September 1, 2021. Cited figures are marked; the original filing is the authoritative source.
Agilent Technologies, Inc. reported a strong third quarter for fiscal year 2021, with total net revenue increasing by 26% year-over-year to $1,586 milliona.
This growth was broad-based, benefiting from increases across all three business segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab. The company also saw a significant increase in net income, reaching $264 millionb, up from $199 million in the prior year's quarter. For the first nine months of fiscal year 2021, Agilent demonstrated robust performance with net revenue of $4,659 million, a 21% increase year-over-year.
Net income for this period was $768 millionc, a substantial rise from $497 million in the same period last year. The company also reported a strong operating cash flow of $1,044 million for the nine-month period.
Agilent completed a significant acquisition of Resolution Bioscience, Inc., for $550 milliond plus potential contingent payments, aimed at expanding its capabilities in precision oncology solutions. The company also continued its capital allocation strategy by redeeming its 2022 Senior Notes and issuing new 2031 Senior Notes.
02—Key points
Key Highlights
- Total net revenue for the third quarter of fiscal year 2021 grew 26% year-over-year to $1,586 million.
- Net income for the third quarter increased by 33% year-over-year to $264 million.
- Nine-month net revenue increased 21% year-over-year to $4,659 million, with net income up 55% to $768 million.
- The Diagnostics and Genomics segment saw particularly strong revenue growth of 44% year-over-year in the third quarter.
- Agilent completed the acquisition of Resolution Bioscience, Inc. for $550 million plus potential future contingent payments.
- Net cash provided by operating activities was $1,044 million for the nine months ended July 31, 2021, a significant increase from $544 million in the prior year.
- The company repurchased approximately $113 million of common stock in the third quarter under its new share repurchase program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2021, Agilent Technologies, Inc. kept $0.17.
- Revenue$1.59B100.0%
- Cost of revenue−$734.0M46.3%
- Gross profit$852.0M53.7%
- Operating costs−$516.0M32.5%
- Operating income$336.0M21.2%
- Interest, other & tax−$72.0M4.5%
- Net income$264.0M16.6%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2021filed September 1, 2021Financial Statements
Q3 FY2021 against Q3 FY2020
| Line item | Q3 FY2021Q3 FY2020 | Change |
|---|---|---|
| Revenue | $1.59B$1.26B | +25.8% |
| Cost of Revenue | $734.00M$592.00M | +24.0% |
| Gross Profit | $852.00M$669.00M | +27.4% |
| R&D Expenses | $113.00M$92.00M | +22.8% |
| SG&A Expenses | $403.00M$347.00M | +16.1% |
| Operating Expenses | $1.25B$1.03B | +21.2% |
| Operating Income | $336.00M$230.00M | +46.1% |
| Interest Expense | $21.00M$19.00M | +10.5% |
| Net Income | $264.00M$199.00M | +32.7% |
| EPS (Basic) | $0.87$0.64 | +35.9% |
| EPS (Diluted) | $0.86$0.64 | +34.4% |
| Shares Outstanding (Basic) | 303.00M309.00M | −1.9% |
| Shares Outstanding (Diluted) | 306.00M312.00M | −1.9% |
05—Questions
Frequently Asked Questions
What was the primary driver of Agilent's revenue growth in the third quarter?
The primary driver of Agilent's revenue growth in the third quarter was broad-based strength across all three of its business segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab. This growth was supported by increases in key end markets and geographies, and was largely non-COVID related.
What is the significance of the Resolution Bioscience acquisition?
The acquisition of Resolution Bioscience, Inc. for $550 million plus potential future contingent payments is significant as it complements and expands Agilent's capabilities in next-generation sequencing (NGS)-based cancer diagnostics. This move aims to provide innovative technology to serve the fast-growing precision medicine market.
How did Agilent manage its debt during this period?
Agilent continued to optimize its capital structure by redeeming its entire $400 million aggregate principal amount of 2022 Senior Notes in two tranches during the first nine months of fiscal year 2021. Concurrently, on March 12, 2021, the company issued $850 million in new 2031 Senior Notes with a lower interest rate of 2.30%.
What is Agilent's outlook for the remainder of the fiscal year?
Looking forward, Agilent expects to navigate the impacts of the COVID-19 pandemic and potential supply chain pressures by focusing on employee and customer safety, supporting customer operations, and mitigating supply chain issues. The company remains optimistic about its long-term growth opportunities across all its end markets, supported by strong results and continued recovery in its markets.
06—Continue