01—Abstract
Summary
Summary of the 10-Q filed May 26, 2023. Cited figures are marked; the original filing is the authoritative source.
Agilent Technologies, Inc. reported solid financial results for the fiscal second quarter and first half of 2023.
Total net revenue increased by 7% and 6% year-over-year for the three and six months ended April 30, 2023, respectively, driven by growth across all segments and geographic regions, although foreign currency movements had an unfavorable impact. Net income also saw a healthy increase, rising to $302 milliona for the quarter and $654 million for the half-year compared to the prior year periods. The company demonstrated strong operational cash flow generation and maintained a healthy balance sheet.
Agilent continues to return capital to shareholders through dividends and share repurchases, with a significant authorization remaining under its new repurchase program. Despite anticipating a challenging macroeconomic environment, Agilent remains optimistic about its long-term growth opportunities.
02—Key points
Key Highlights
- Total net revenue increased by 7% to $1.717 billion for the three months ended April 30, 2023, and by 6% to $3.473 billion for the six months ended April 30, 2023.
- Net income rose to $302 million for the quarter and $654 million for the six-month period, up from $274 million and $557 million in the prior year, respectively.
- All three business segments (Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab) reported revenue growth.
- Operating margin remained strong at 22.3% for the quarter and improved to 23.3% for the six-month period.
- Net cash provided by operating activities was $694 million for the first six months of fiscal 2023, an increase from $538 million in the prior year.
- The company returned $133 million to shareholders via dividends and repurchased shares under its new $2.0 billion repurchase program, with approximately $1.939 billion remaining authorization as of April 30, 2023.
- The company declared a quarterly dividend of $0.225 per share, payable in July 2023.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2023, Agilent Technologies, Inc. kept $0.18.
- Revenue$1.72B100.0%
- Cost of revenue−$793.0M46.2%
- Gross profit$924.0M53.8%
- Operating costs−$541.0M31.5%
- Operating income$383.0M22.3%
- Interest, other & tax−$81.0M4.7%
- Net income$302.0M17.6%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2023filed May 26, 2023Financial Statements
Q2 FY2023 against Q2 FY2022
| Line item | Q2 FY2023Q2 FY2022 | Change |
|---|---|---|
| Revenue | $1.72B$1.61B | +6.8% |
| Cost of Revenue | $793.00M$746.00M | +6.3% |
| Gross Profit | $924.00M$861.00M | +7.3% |
| R&D Expenses | $126.00M$115.00M | +9.6% |
| SG&A Expenses | $415.00M$386.00M | +7.5% |
| Operating Expenses | $1.33B$1.25B | +7.0% |
| Operating Income | $383.00M$360.00M | +6.4% |
| Interest Expense | $24.00M$21.00M | +14.3% |
| Net Income | $302.00M$274.00M | +10.2% |
| EPS (Basic) | $1.02$0.92 | +10.9% |
| EPS (Diluted) | $1.02$0.91 | +12.1% |
| Shares Outstanding (Basic) | 296.00M299.00M | −1.0% |
| Shares Outstanding (Diluted) | 297.00M301.00M | −1.3% |
05—Questions
Frequently Asked Questions
What was Agilent's revenue performance in the reported quarter?
Agilent reported a total net revenue of $1.717 billion for the three months ended April 30, 2023, representing a 7% increase compared to the same period last year. This growth was observed across all segments and geographic regions, with particular strength noted in Asia Pacific, driven by demand in China.
How did Agilent's profitability change year-over-year?
Agilent's profitability improved year-over-year. Net income increased to $302 million for the three months ended April 30, 2023, from $274 million in the prior year. The operating margin was stable at 22.3% for the quarter, while the gross margin saw a slight improvement.
What is the company's outlook for the remainder of the fiscal year?
Agilent anticipates a challenging macroeconomic environment for fiscal year 2023 but remains optimistic about its long-term growth opportunities across its key end markets. The company will continue to focus on improving customer experience, differentiating product solutions, and enhancing productivity, while managing interest rate and inflationary pressures.
How is Agilent managing its capital and returning value to shareholders?
Agilent generated strong operating cash flow of $694 million for the first six months of fiscal 2023. The company continues to return capital to shareholders through regular cash dividends and share repurchases. As of April 30, 2023, approximately $1.939 billion remained authorized under its new $2.0 billion share repurchase program.
06—Continue