10-QPeriod: Q1 FY2022

AGILENT TECHNOLOGIES, INC. Quarterly Report for Q1 Ended Jan 31, 2022

Filed March 3, 2022For Securities:A

Summary

Agilent Technologies, Inc. reported strong performance for the third quarter of fiscal year 2022, with total net revenue increasing by 8% year-over-year to $1.674 billion. This growth was broad-based, with increases across all segments, geographies, and key end markets, driven by both product and service revenues. The company demonstrated solid operational execution, with income from operations increasing by 15% year-over-year to $376 million and an operating margin of 22.5%. Despite some unfavorable foreign currency impacts, Agilent's core business remains robust, with particular strength noted in the Diagnostics and Genomics segment which saw a 15% revenue increase. Financially, the company maintained a healthy cash flow from operations of $255 million. Agilent continued its commitment to returning value to shareholders through $63 million in dividends paid and significant share repurchases totaling $447 million during the quarter. While facing ongoing macroeconomic challenges such as supply chain pressures and inflationary costs, Agilent remains optimistic about its long-term growth prospects, supported by new product introductions and strategic investments in its business segments.

Financial Highlights

54 data points
Beta

Revenue

$1.67B

54.4% Gross Margin

Net Income

$283.00M

16.9% Net Margin

EPS (Diluted)

$0.93

Total Assets

$10.33B

Cash & Equivalents

$1.12B

Free Cash Flow

$180.00M

Financial Statements
Beta
Revenue$1.67B
Cost of Revenue$764.00M
Gross Profit$910.00M
R&D Expenses$117.00M
SG&A Expenses$417.00M
Operating Expenses$1.30B
Operating Income$376.00M
Interest Expense$21.00M
Net Income$283.00M
EPS (Basic)$0.94
EPS (Diluted)$0.93
Shares Outstanding (Basic)301.00M
Shares Outstanding (Diluted)303.00M

Key Highlights

  • 1Total net revenue grew 8% year-over-year to $1.674 billion, driven by strong performance across all segments.
  • 2Income from operations increased 15% year-over-year to $376 million, resulting in a healthy operating margin of 22.5%.
  • 3Diagnostics and Genomics segment showed robust growth with a 15% year-over-year revenue increase.
  • 4Net cash provided by operating activities was $255 million, demonstrating strong operational cash generation.
  • 5The company returned $63 million to shareholders via dividends and repurchased $447 million of its stock.
  • 6Gross margin remained stable at 54.3%, despite facing increased costs for wages and logistics.
  • 7Company updated its organizational structure to enable growth strategies, with historical segment information recast.

Frequently Asked Questions

Agilent Technologies reported an 8% year-over-year increase in total net revenue to $1.674 billion for the three months ended January 31, 2022. Income from operations rose 15% to $376 million, and the operating margin was 22.5%. The company generated $255 million in cash from operating activities.

All segments showed growth, but the Diagnostics and Genomics segment was a standout performer with a 15% year-over-year revenue increase. The Life Sciences and Applied Markets segment grew 6%, and the Agilent CrossLab segment increased 8%.

Agilent demonstrated a commitment to shareholder returns by paying $63 million in dividends and repurchasing $447 million of its common stock under its 2021 repurchase program. The company also invested $75 million in property, plant, and equipment, with expectations for total capital expenditures of approximately $300 million for the fiscal year.

Revenue growth was driven by increases in both product and service revenues. Product revenue saw an 8% increase, primarily from the liquid chromatography mass spectrometry and nucleic acid solutions businesses. Services and other revenue grew 9%, fueled by contract repair and consultative services. Growth was observed across all major end markets, including pharmaceutical, chemical and energy, and diagnostics and clinical.