10-QPeriod: Q3 FY2022

AGILENT TECHNOLOGIES, INC. Quarterly Report for Q3 Ended Jul 31, 2022

Filed September 1, 2022For Securities:A

Summary

Agilent Technologies, Inc. reported solid revenue growth for the nine months ended July 31, 2022, with total net revenue increasing by 7% year-over-year to $4.999 billion. This growth was primarily driven by a 14% increase in revenue for the three months ended July 31, 2022, despite an unfavorable foreign currency impact of 5 percentage points. The company demonstrated strong performance in the Americas and Asia Pacific regions, with key contributions from the pharmaceutical and chemical and energy end markets. Net income for the nine months increased to $886 million, up from $768 million in the prior year. The company's operating margin improved by 3 percentage points to 22.9% for the nine-month period. Agilent Technologies also continued its commitment to returning capital to shareholders through dividends and a robust share repurchase program, with approximately $573 million remaining authorization under its 2021 repurchase program as of July 31, 2022.

Financial Highlights

56 data points
Beta

Revenue

$1.72B

54.7% Gross Margin

Net Income

$329.00M

19.2% Net Margin

EPS (Diluted)

$1.10

Total Assets

$10.48B

Cash & Equivalents

$1.07B

Free Cash Flow

$244.00M

Financial Statements
Beta
Revenue$1.72B
Cost of Revenue$779.00M
Gross Profit$939.00M
R&D Expenses$116.00M
SG&A Expenses$412.00M
Operating Expenses$1.31B
Operating Income$411.00M
Interest Expense$19.00M
Net Income$329.00M
EPS (Basic)$1.10
EPS (Diluted)$1.10
Shares Outstanding (Basic)298.00M
Shares Outstanding (Diluted)299.00M

Key Highlights

  • 1Total net revenue for the nine months ended July 31, 2022, increased by 7% to $4.999 billion compared to the same period last year.
  • 2Net income for the nine months ended July 31, 2022, grew to $886 million, up from $768 million in the prior year.
  • 3Operating margin improved significantly, increasing by 3 percentage points to 22.9% for the nine months ended July 31, 2022.
  • 4The Life Sciences and Applied Markets segment showed strong revenue growth, increasing 14% in the third quarter and 7% year-to-date.
  • 5The company repurchased $1.004 billion of common stock during the nine months ended July 31, 2022, demonstrating a commitment to shareholder returns.
  • 6Despite an unfavorable foreign currency impact of 3 percentage points on revenue for the nine months, the company achieved consistent growth.
  • 7Cash provided by operating activities was $864 million for the nine months ended July 31, 2022.

Frequently Asked Questions

For the nine months ended July 31, 2022, Agilent Technologies reported total net revenue of $4.999 billion, a 7% increase compared to the same period last year. The third quarter also showed strong growth, with revenue up 8% year-over-year to $1.718 billion. This growth was achieved despite an unfavorable foreign currency impact of 3 percentage points for the nine-month period and 5 percentage points for the third quarter.

Profitability saw a notable improvement. Net income for the nine months ended July 31, 2022, increased to $886 million from $768 million in the prior year. The operating margin expanded by 3 percentage points to 22.9% for the nine-month period, driven by higher sales volumes.

The Life Sciences and Applied Markets segment continues to be a strong performer, with revenue increasing by 14% in the third quarter and 7% year-to-date. The Diagnostics and Genomics segment experienced a slight decrease of 2% in revenue for the third quarter but saw a 9% increase year-to-date. The Agilent CrossLab segment also demonstrated steady growth, with a 5% increase in the third quarter and 7% year-to-date.

Agilent Technologies continues to focus on balanced capital allocation. The company paid cash dividends and actively engaged in share repurchases, repurchasing $1.004 billion of common stock during the nine months ended July 31, 2022. As of the end of the period, approximately $573 million remained authorized under its share repurchase program.