01—Abstract
Summary
Summary of the 10-Q filed March 3, 2023. Cited figures are marked; the original filing is the authoritative source.
Agilent Technologies, Inc. reported solid financial results for the third quarter of fiscal year 2023, with total net revenue of $1.756 billiona, a 5% increase year-over-year.
This growth was achieved despite a 5 percentage point headwind from unfavorable foreign currency movements. The company saw revenue increases across all its segments: Life Sciences and Applied Markets (+6%), Diagnostics and Genomics (+1%), and Agilent CrossLab (+6%). Net income rose to $352 millionb from $283 million in the prior year period, reflecting improved operational efficiency and strong revenue performance.
The company's operational profitability also strengthened, with income from operations increasing by 13% to $426 millionc and operating margin expanding by 2 percentage points to 24.3%. This was driven by a higher gross margin of 55.1% and disciplined management of operating expenses.
Agilent Technologies also demonstrated strong cash generation, with net cash provided by operating activities increasing to $296 milliond from $255 million in the prior year, indicating robust operational cash flow. The company continues to manage its capital effectively, with ongoing share repurchase programs and consistent dividend payments.
02—Key points
Key Highlights
- Total net revenue of $1.756 billion, up 5% year-over-year, demonstrating consistent demand across business segments.
- Net income increased to $352 million, a significant improvement from $283 million in the prior year quarter, reflecting enhanced profitability.
- Income from operations grew by 13% to $426 million, with operating margin expanding to 24.3% due to sales volume and cost management.
- All three business segments (Life Sciences and Applied Markets, Diagnostics and Genomics, Agilent CrossLab) contributed to revenue growth.
- Net cash provided by operating activities increased to $296 million, highlighting strong cash generation capabilities.
- The company declared a quarterly dividend of $0.225 per share, demonstrating a commitment to returning value to shareholders.
- Despite foreign currency headwinds impacting revenue by 5 percentage points, the company achieved organic growth.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2023, Agilent Technologies, Inc. kept $0.20.
- Revenue$1.76B100.0%
- Cost of revenue−$788.0M44.9%
- Gross profit$968.0M55.1%
- Operating costs−$542.0M30.9%
- Operating income$426.0M24.3%
- Interest, other & tax−$74.0M4.2%
- Net income$352.0M20.0%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2023filed March 3, 2023Financial Statements
Q1 FY2023 against Q1 FY2022
| Line item | Q1 FY2023Q1 FY2022 | Change |
|---|---|---|
| Revenue | $1.76B$1.67B | +4.9% |
| Cost of Revenue | $788.00M$764.00M | +3.1% |
| Gross Profit | $968.00M$910.00M | +6.4% |
| R&D Expenses | $123.00M$117.00M | +5.1% |
| SG&A Expenses | $419.00M$417.00M | +0.5% |
| Operating Expenses | $1.33B$1.30B | +2.5% |
| Operating Income | $426.00M$376.00M | +13.3% |
| Interest Expense | $25.00M$21.00M | +19.0% |
| Net Income | $352.00M$283.00M | +24.4% |
| EPS (Basic) | $1.19$0.94 | +26.6% |
| EPS (Diluted) | $1.19$0.93 | +28.0% |
| Shares Outstanding (Basic) | 296.00M301.00M | −1.7% |
| Shares Outstanding (Diluted) | 297.00M303.00M | −2.0% |
05—Questions
Frequently Asked Questions
What was Agilent Technologies' revenue performance in the reported quarter?
Agilent Technologies reported total net revenue of $1.756 billion for the three months ended January 31, 2023, which represents a 5% increase compared to the same period last year. This growth was observed across all business segments, despite an unfavorable impact of foreign currency movements which reduced revenue growth by 5 percentage points.
How did the company's profitability change in this quarter?
Profitability improved significantly. Net income rose to $352 million, up from $283 million in the prior year's comparable quarter. Income from operations increased by 13% to $426 million, and the operating margin expanded by 2 percentage points to 24.3%. This was driven by a higher gross margin of 55.1% and disciplined expense management.
What is the company's cash flow situation?
Agilent Technologies demonstrated strong cash generation. Net cash provided by operating activities increased to $296 million for the three months ended January 31, 2023, compared to $255 million in the prior year period. This indicates healthy operational cash flow.
How is Agilent Technologies returning value to its shareholders?
The company continues to return value through consistent shareholder returns. They declared a quarterly dividend of $0.225 per share. Additionally, the company repurchased shares under its authorized repurchase programs, although the pace of repurchases was lower in this quarter compared to the prior year, with $75 million spent on share repurchases.
06—Continue