01—Abstract
Summary
Summary of the 10-Q filed September 1, 2022. Cited figures are marked; the original filing is the authoritative source.
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 billiona.
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 millionb, 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 millionc remaining authorization under its 2021 repurchase program as of July 31, 2022.
02—Key points
Key Highlights
- Total net revenue for the nine months ended July 31, 2022, increased by 7% to $4.999 billion compared to the same period last year.
- Net income for the nine months ended July 31, 2022, grew to $886 million, up from $768 million in the prior year.
- Operating margin improved significantly, increasing by 3 percentage points to 22.9% for the nine months ended July 31, 2022.
- The Life Sciences and Applied Markets segment showed strong revenue growth, increasing 14% in the third quarter and 7% year-to-date.
- The company repurchased $1.004 billion of common stock during the nine months ended July 31, 2022, demonstrating a commitment to shareholder returns.
- Despite an unfavorable foreign currency impact of 3 percentage points on revenue for the nine months, the company achieved consistent growth.
- Cash provided by operating activities was $864 million for the nine months ended July 31, 2022.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2022, Agilent Technologies, Inc. kept $0.19.
- Revenue$1.72B100.0%
- Cost of revenue−$779.0M45.3%
- Gross profit$939.0M54.7%
- Operating costs−$528.0M30.7%
- Operating income$411.0M23.9%
- Interest, other & tax−$82.0M4.8%
- Net income$329.0M19.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2022filed September 1, 2022Financial Statements
Q3 FY2022 against Q3 FY2021
| Line item | Q3 FY2022Q3 FY2021 | Change |
|---|---|---|
| Revenue | $1.72B$1.59B | +8.3% |
| Cost of Revenue | $779.00M$734.00M | +6.1% |
| Gross Profit | $939.00M$852.00M | +10.2% |
| R&D Expenses | $116.00M$113.00M | +2.7% |
| SG&A Expenses | $412.00M$403.00M | +2.2% |
| Operating Expenses | $1.31B$1.25B | +4.6% |
| Operating Income | $411.00M$336.00M | +22.3% |
| Interest Expense | $19.00M$21.00M | −9.5% |
| Net Income | $329.00M$264.00M | +24.6% |
| EPS (Basic) | $1.10$0.87 | +26.4% |
| EPS (Diluted) | $1.10$0.86 | +27.9% |
| Shares Outstanding (Basic) | 298.00M303.00M | −1.7% |
| Shares Outstanding (Diluted) | 299.00M306.00M | −2.3% |
05—Questions
Frequently Asked Questions
What was Agilent Technologies' revenue performance for the reported period?
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.
How did the company's profitability evolve?
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.
What is the outlook for the company's key business segments?
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.
How is Agilent Technologies managing its capital and returning value to shareholders?
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.
06—Continue