10-QPeriod: Q3 FY2021

AGILENT TECHNOLOGIES, INC. Quarterly Report for Q3 Ended Jul 31, 2021

Filed September 1, 2021For Securities:A

Summary

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 million. 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 million, 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 million, 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 million 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.

Financial Highlights

56 data points
Beta

Revenue

$1.59B

53.7% Gross Margin

Net Income

$264.00M

16.6% Net Margin

EPS (Diluted)

$0.86

Total Assets

$10.49B

Cash & Equivalents

$1.44B

Free Cash Flow

$280.00M

Financial Statements
Beta
Revenue$1.59B
Cost of Revenue$734.00M
Gross Profit$852.00M
R&D Expenses$113.00M
SG&A Expenses$403.00M
Operating Expenses$1.25B
Operating Income$336.00M
Interest Expense$21.00M
Net Income$264.00M
EPS (Basic)$0.87
EPS (Diluted)$0.86
Shares Outstanding (Basic)303.00M
Shares Outstanding (Diluted)306.00M

Key Highlights

  • 1Total net revenue for the third quarter of fiscal year 2021 grew 26% year-over-year to $1,586 million.
  • 2Net income for the third quarter increased by 33% year-over-year to $264 million.
  • 3Nine-month net revenue increased 21% year-over-year to $4,659 million, with net income up 55% to $768 million.
  • 4The Diagnostics and Genomics segment saw particularly strong revenue growth of 44% year-over-year in the third quarter.
  • 5Agilent completed the acquisition of Resolution Bioscience, Inc. for $550 million plus potential future contingent payments.
  • 6Net 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.
  • 7The company repurchased approximately $113 million of common stock in the third quarter under its new share repurchase program.

Frequently Asked Questions

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.

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.

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%.

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.