01—Abstract
Summary
Summary of the 10-Q filed March 3, 2022. Cited figures are marked; the original filing is the authoritative source.
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 billiona.
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 millionb 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 millionc. 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.
02—Key points
Key Highlights
- Total net revenue grew 8% year-over-year to $1.674 billion, driven by strong performance across all segments.
- Income from operations increased 15% year-over-year to $376 million, resulting in a healthy operating margin of 22.5%.
- Diagnostics and Genomics segment showed robust growth with a 15% year-over-year revenue increase.
- Net cash provided by operating activities was $255 million, demonstrating strong operational cash generation.
- The company returned $63 million to shareholders via dividends and repurchased $447 million of its stock.
- Gross margin remained stable at 54.3%, despite facing increased costs for wages and logistics.
- Company updated its organizational structure to enable growth strategies, with historical segment information recast.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2022, Agilent Technologies, Inc. kept $0.17.
- Revenue$1.67B100.0%
- Cost of revenue−$764.0M45.6%
- Gross profit$910.0M54.4%
- Operating costs−$534.0M31.9%
- Operating income$376.0M22.5%
- Interest, other & tax−$93.0M5.6%
- Net income$283.0M16.9%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2022filed March 3, 2022Financial Statements
Q1 FY2022 against Q1 FY2021
| Line item | Q1 FY2022Q1 FY2021 | Change |
|---|---|---|
| Revenue | $1.67B$1.55B | +8.1% |
| Cost of Revenue | $764.00M$710.00M | +7.6% |
| Gross Profit | $910.00M$838.00M | +8.6% |
| R&D Expenses | $117.00M$103.00M | +13.6% |
| SG&A Expenses | $417.00M$407.00M | +2.5% |
| Operating Expenses | $1.30B$1.22B | +6.4% |
| Operating Income | $376.00M$328.00M | +14.6% |
| Interest Expense | $21.00M$19.00M | +10.5% |
| Net Income | $283.00M$288.00M | −1.7% |
| EPS (Basic) | $0.94$0.94 | 0.0% |
| EPS (Diluted) | $0.93$0.93 | 0.0% |
| Shares Outstanding (Basic) | 301.00M306.00M | −1.6% |
| Shares Outstanding (Diluted) | 303.00M309.00M | −1.9% |
05—Questions
Frequently Asked Questions
What was Agilent's overall financial performance in the third quarter of fiscal year 2022?
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.
Which segments performed particularly well during the quarter?
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%.
How did Agilent manage its capital allocation during the quarter?
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.
What were the main drivers of revenue growth?
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.
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