10-QPeriod: Q1 FY2023

AGILENT TECHNOLOGIES, INC. Quarterly Report for Q1 Ended Jan 31, 2023

Filed March 3, 2023For Securities:A

Summary

Agilent Technologies, Inc. reported solid financial results for the third quarter of fiscal year 2023, with total net revenue of $1.756 billion, 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 million 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 million 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 million 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.

Financial Highlights

56 data points
Beta

Revenue

$1.76B

55.1% Gross Margin

Net Income

$352.00M

20.0% Net Margin

EPS (Diluted)

$1.19

Total Assets

$10.92B

Cash & Equivalents

$1.25B

Free Cash Flow

$220.00M

Financial Statements
Beta
Revenue$1.76B
Cost of Revenue$788.00M
Gross Profit$968.00M
R&D Expenses$123.00M
SG&A Expenses$419.00M
Operating Expenses$1.33B
Operating Income$426.00M
Interest Expense$25.00M
Net Income$352.00M
EPS (Basic)$1.19
EPS (Diluted)$1.19
Shares Outstanding (Basic)296.00M
Shares Outstanding (Diluted)297.00M

Key Highlights

  • 1Total net revenue of $1.756 billion, up 5% year-over-year, demonstrating consistent demand across business segments.
  • 2Net income increased to $352 million, a significant improvement from $283 million in the prior year quarter, reflecting enhanced profitability.
  • 3Income from operations grew by 13% to $426 million, with operating margin expanding to 24.3% due to sales volume and cost management.
  • 4All three business segments (Life Sciences and Applied Markets, Diagnostics and Genomics, Agilent CrossLab) contributed to revenue growth.
  • 5Net cash provided by operating activities increased to $296 million, highlighting strong cash generation capabilities.
  • 6The company declared a quarterly dividend of $0.225 per share, demonstrating a commitment to returning value to shareholders.
  • 7Despite foreign currency headwinds impacting revenue by 5 percentage points, the company achieved organic growth.

Frequently Asked Questions

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.

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.

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.

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.