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 Related Quotes
 Agilent Technologies Inc  137.74   1.37  1.00%
 Enter Symbols: 

Agilent Reports First-Quarter Fiscal Year 2024 Financial Results


Revenue and earnings exceed Q1 guidance

Full-year outlook maintained


Highlights



  • Revenue of $1.66 billion, down 5.6% reported and 6.4% core(1) from the first quarter of 2023.



  • GAAP net income of $348 million; earnings per share (EPS) of $1.18, down 1% from the first quarter of 2023.



  • Non-GAAP(2) net income of $380 million; EPS of $1.29, down 6% from the first quarter of 2023.



  • Full-year revenue outlook maintained at $6.710 billion to $6.810 billion, representing a range of down 1.8% to 0.3% on a reported basis and down 0.5% to up 1% core(1). Fiscal year 2024 non-GAAP(3) earnings guidance also maintained at a range of $5.44 to $5.55 per share.



  • Second-quarter revenue outlook expected at $1.560 billion to $1.590 billion with non-GAAP(3) EPS of $1.17 to $1.20.




SANTA CLARA, Calif., Feb. 27 /BusinessWire/ -- Agilent Technologies Inc. (NYSE:A) today reported revenue of $1.66 billion for the first quarter ended Jan. 31, 2024, a decline of 5.6% reported and 6.4% core(1) compared to the first quarter of 2023.

First-quarter GAAP net income was $348 million, or $1.18 per share. This compares with $352 million, or $1.19 per share, in the first quarter of fiscal year 2023. Non-GAAP(2) net income was $380 million, or $1.29 per share during the quarter, compared with $406 million or $1.37 per share during the first quarter a year ago.

"The Agilent team continued its strong execution in the first quarter, delivering better-than-expected revenue and earnings," said President and CEO Mike McMullen. "We are well positioned for long-term growth driven by our diversified business and multiple growth drivers. While near term market challenges remain, I continue to be optimistic about our future."

Financial Highlights

In the first quarter of 2024, Agilent implemented certain changes to its segment reporting structure. Prior period segment information has been recast to reflect these changes. These changes have no impact on Agilent's consolidated financial statements.

Life Sciences and Applied Markets Group

Agilent's Life Sciences and Applied Markets Group (LSAG) reported first-quarter revenue of $846 million, a decline of 10% reported and 11% core(1) year-over-year. LSAG's operating margin for the quarter was 27.9%.

Agilent CrossLab Group

The Agilent CrossLab Group (ACG) reported first-quarter revenue of $405 million, an increase of 6% reported and 5% core(1) year-over-year. ACG's operating margin for the quarter was 30.2%.

Diagnostics and Genomics Group

The Diagnostics and Genomics Group (DGG) reported first-quarter revenue of $407 million, a decrease of 6% reported and 6% core(1) year-over-year. DGG's operating margin for the quarter was 17.3%.

Full Year 2024 and Second-Quarter Outlook

Full-year revenue outlook is maintained at $6.710 billion to $6.810 billion, representing a range of down 1.8% to 0.3% on a reported basis and down 0.5% to up 1% core(1). Fiscal year 2024 non-GAAP(3) earnings guidance is also maintained with a range of $5.44 to $5.55 per share.

The outlook for second-quarter revenue is expected in the range of $1.560 billion to $1.590 billion, a decline of 9.1% to 7.4% reported and a decline of 8.4% to 6.7% core(1). Second-quarter non-GAAP(3) earnings guidance is expected in the range of $1.17 to $1.20 per share.

The outlook is based on forecasted currency exchange rates.

Conference Call

Agilent's management will present additional details regarding the company's first-quarter 2024 financial results on a conference call with investors today at 1:30 p.m. PST. This event will be broadcast live online in listen-only mode. To listen to the webcast, select the "Q1 2024 Agilent Technologies Inc. Earnings Conference Call" link on the Agilent Investor Relations website. The webcast will remain on the company site for 90 days.

About Agilent Technologies

Agilent Technologies Inc. (NYSE: A) is a global leader in analytical and clinical laboratory technologies, delivering insights and innovation that help our customers bring great science to life. Agilent's full range of solutions includes instruments, software, services, and expertise that provide trusted answers to our customers' most challenging questions. The company generated revenue of $6.83 billion in fiscal 2023 and employs approximately 18,000 people worldwide. Information about Agilent is available at www.agilent.com. To receive the latest Agilent news, subscribe to the Agilent Newsroom. Follow Agilent on LinkedIn and Facebook.

Forward-Looking Statements

This news release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The forward-looking statements contained herein include, but are not limited to, information regarding Agilent's growth prospects, business, financial results, revenue, and non-GAAP earnings guidance for Q2 and fiscal year 2024 and future amortization of intangibles. These forward-looking statements involve risks and uncertainties that could cause Agilent's results to differ materially from management's current expectations. Such risks and uncertainties include, but are not limited to, unforeseen changes in the strength of Agilent's customers' businesses; unforeseen changes in the demand for current and new products, technologies, and services; unforeseen changes in the currency markets; customer purchasing decisions and timing; and the risk that Agilent is not able to realize the savings expected from integration and restructuring activities. In addition, other risks that Agilent faces in running its operations include the ability to execute successfully through business cycles; the ability to meet and achieve the benefits of its cost-reduction goals and otherwise successfully adapt its cost structures to continuing changes in business conditions; ongoing competitive, pricing and gross-margin pressures; the risk that its cost-cutting initiatives will impair its ability to develop products and remain competitive and to operate effectively; the impact of geopolitical uncertainties and global economic conditions on its operations, its markets and its ability to conduct business; the ability to improve asset performance to adapt to changes in demand; the ability of its supply chain to adapt to changes in demand; the ability to successfully introduce new products at the right time, price and mix; the ability of Agilent to successfully integrate recent acquisitions; the ability of Agilent to successfully comply with certain complex regulations; and other risks detailed in Agilent's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the fiscal year ended October 31, 2023. Forward-looking statements are based on the beliefs and assumptions of Agilent's management and on currently available information. Agilent undertakes no responsibility to publicly update or revise any forward-looking statement.

(1) Core revenue growth excludes the impact of currency and acquisitions and divestitures within the past 12 months. Core revenue is a non-GAAP measure. Reconciliations between GAAP revenue and core revenue for Q1 fiscal year 2024 are set forth on page 6 of the attached tables along with additional information regarding the use of this non-GAAP measure. Core revenue growth rate as projected for Q2 fiscal year 2024 and full fiscal year 2024 excludes the impact of currency and acquisitions and divestitures within the past 12 months. Most of the excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy and could differ materially. Therefore, no reconciliation to GAAP amounts has been provided for the projection.

(2) Non-GAAP net income and non-GAAP earnings per share primarily exclude the impacts of restructuring and other related costs, asset impairments, intangibles amortization, transformational initiatives, acquisition and integration costs, net loss on equity securities and change in fair value of contingent consideration. Agilent also excludes any tax benefits or expenses that are not directly related to ongoing operations, and which are either isolated or are not expected to occur again with any regularity or predictability. A reconciliation between non-GAAP net income and GAAP net income is set forth on page 4 of the attached tables along with additional information regarding the use of this non-GAAP measure.

(3) Non-GAAP earnings per share as projected for Q2 fiscal year 2024 and full fiscal year 2024 exclude primarily the estimated impacts of non-cash intangibles amortization, transformational initiatives, and acquisition and integration costs. Agilent also excludes any tax benefits or expenses that are not directly related to ongoing operations, and which are either isolated or are not expected to occur again with any regularity or predictability. Most of these excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy and could differ materially. Therefore, no reconciliation to GAAP amounts has been provided. Future amortization of intangibles is expected to be approximately $27 million per quarter.

AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)
PRELIMINARY
Three Months Ended
January 31,

2024

2023

Net revenue

$

1,658

$

1,756

Costs and expenses:
Cost of products and services

750

788

Research and development

128

123

Selling, general and administrative

396

419

Total costs and expenses

1,274

1,330

Income from operations

384

426

Interest income

18

9

Interest expense

(22

)

(25

)

Other income (expense), net

23

-

Income before taxes

403

410

Provision for income taxes

55

58

Net income

$

348

$

352

Net income per share:
Basic

$

1.19

$

1.19

Diluted

$

1.18

$

1.19

Weighted average shares used in computing net income per share:
Basic

293

296

Diluted

294

297

The preliminary income statement is estimated based on our current information.
Page 1
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions, except par value and share data)
(Unaudited)
PRELIMINARY
January 31, October 31,

2024

2023

ASSETS
Current assets:
Cash and cash equivalents

$

1,748

$

1,590

Accounts receivable, net

1,295

1,291

Inventory

1,033

1,031

Other current assets

262

274

Total current assets

4,338

4,186

Property, plant and equipment, net

1,314

1,270

Goodwill

3,967

3,960

Other intangible assets, net

443

475

Long-term investments

170

164

Other assets

716

708

Total assets

$

10,948

$

10,763

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable

$

488

$

418

Employee compensation and benefits

272

371

Deferred revenue

522

505

Other accrued liabilities

335

309

Total current liabilities

1,617

1,603

Long-term debt

2,555

2,735

Retirement and post-retirement benefits

102

103

Other long-term liabilities

486

477

Total liabilities

4,760

4,918

Total Equity:
Stockholders' equity:
Preferred stock; $0.01 par value; 125,000,000 shares authorized; none issued and outstanding at January 31, 2024 and October 31, 2023

-

-

Common stock; $0.01 par value, 2,000,000,000 shares authorized; 293,041,817 shares at January 31, 2024 and 292,123,241 shares at October 31, 2023, issued and outstanding

3

3

Additional paid-in-capital

5,440

5,387

Retained earnings

1,061

782

Accumulated other comprehensive loss

(316

)

(327

)

Total stockholders' equity

6,188

5,845

Total liabilities and stockholders' equity

$

10,948

$

10,763

The preliminary balance sheet is estimated based on our current information.
Page 2
AGILENT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
(Unaudited)
PRELIMINARY
Three Months Ended
January 31, January 31,

2024

2023

Cash flows from operating activities:
Net income

$

348

$

352

Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization

62

67

Share-based compensation

44

44

Deferred taxes

-

4

Excess and obsolete inventory related charges

11

7

Net (gain) loss on equity securities

(3

)

10

Asset impairment charges

8

-

Change in fair value of contingent consideration

-

1

Other non-cash (income) expense, net

(6

)

1

Changes in assets and liabilities:
Accounts receivable, net

10

(5

)

Inventory

(9

)

(69

)

Accounts payable

84

(27

)

Employee compensation and benefits

(104

)

(174

)

Other assets and liabilities

40

85

Net cash provided by operating activities (a)

485

296

Cash flows from investing activities:
Payments to acquire property, plant and equipment

(90

)

(76

)

Proceeds from sale of equity securities

-

4

Payments to acquire equity securities

-

(1

)

Proceeds from convertible note

-

2

Payments in exchange for convertible note

(5

)

(3

)

Payments to acquire businesses and intangible assets, net of cash acquired

-

(30

)

Net cash used in investing activities

(95

)

(104

)

Cash flows from financing activities:
Proceeds from issuance of common stock under employee stock plans

34

35

Payment of taxes related to net share settlement of equity awards

(25

)

(51

)

Payments for repurchase of common stock

-

(75

)

Payments of dividends

(69

)

(67

)

Repayments of long-term debt

(180

)

-

Net proceeds from short-term debt

-

203

Payment for contingent consideration

-

(62

)

Net cash used in financing activities

(240

)

(17

)

Effect of exchange rate movements

7

22

Net increase in cash, cash equivalents and restricted cash

157

197

Cash, cash equivalents and restricted cash at beginning of period

1,593

1,056

Cash, cash equivalents and restricted cash at end of period

$

1,750

$

1,253

Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheet:
Cash and cash equivalents

$

1,748

$

1,250

Restricted cash, included in other assets

2

3

Total cash, cash equivalents and restricted cash

$

1,750

$

1,253

(a) Cash payments included in operating activities:
Income tax paid, net of refunds received

$

24

$

17

Interest payments, net of capitalized interest

$

14

$

15

The preliminary cash flow is estimated based on our current information.
Page 3
AGILENT TECHNOLOGIES, INC.
NON-GAAP NET INCOME AND DILUTED EPS RECONCILIATIONS
(In millions, except per share amounts)
(Unaudited)
PRELIMINARY
Three Months Ended
January 31,

2024

2023

Net Income Diluted EPS Net Income Diluted EPS
GAAP net income

$

348

$

1.18

$

352

$

1.19

Non-GAAP adjustments:
Restructuring and other related costs

3

0.01

-

-

Asset impairments

8

0.03

-

-

Intangible amortization

26

0.09

36

0.12

Transformational initiatives

3

0.01

7

0.02

Acquisition and integration costs

2

0.01

2

0.01

Net loss on equity securities

-

-

12

0.04

Change in fair value of contingent consideration

-

-

1

-

Other

(6

)

(0.02

)

3

0.01

Adjustment for taxes (a)

(4

)

(0.02

)

(7

)

(0.02

)

Non-GAAP net income

$

380

$

1.29

$

406

$

1.37

(a) The adjustment for taxes excludes tax expense (benefits) that management believes are not directly related to on-going operations and which are either isolated, temporary or cannot be expected to occur again with any regularity or predictability such as the realized gain/loss due to sale of a business, windfall benefits on stock compensation, and the impact of R&D capitalization under section 174 of the Tax Cuts and Jobs Act of 2017. For the three months ended January 31, 2024, management used a non-GAAP effective tax rate of 13.50%. For the three months ended January 31, 2023, management used a non-GAAP effective tax rate of 13.75%.
We provide non-GAAP net income and non-GAAP net income per share amounts in order to provide meaningful supplemental information regarding our operational performance and our prospects for the future. These supplemental measures exclude, among other things, charges related to restructuring and other related costs, asset impairments, amortization of intangibles, transformational initiatives, acquisition and integration costs, net loss on equity securities and change in fair value of contingent consideration.
Restructuring and other related costs include incremental expenses incurred in the period associated with restructuring programs, usually aimed at changes in business and/or cost structure. Such costs may include one-time termination benefits, facility-related costs and contract termination fees.
Asset impairments include assets that have been written down to their fair value.
Transformational initiatives include expenses associated with targeted cost reduction activities such as manufacturing transfers including costs to move manufacturing, small site consolidations, legal entity and other business reorganizations, insourcing or outsourcing of activities. Such costs may include move and relocation costs, one-time termination benefits and other one-time reorganization costs. Included in this category are also expenses associated with company programs to transform our product lifecycle management (PLM) system, human resources and financial systems.
Acquisition and integration costs include all incremental expenses incurred to effect a business combination. Such acquisition costs may include advisory, legal, accounting, valuation, and other professional or consulting fees. Such integration costs may include expenses directly related to integration of business and facility operations, the transfer of assets and intellectual property, information technology systems and infrastructure and other employee-related costs.
Net loss on equity securities relates to the realized and unrealized mark-to-market adjustments for our marketable and non-marketable equity securities.
Change in fair value of contingent consideration represents changes in the fair value estimate of acquisition-related contingent consideration.
Other includes acceleration of share-based compensation expense and certain legal costs and settlements in addition to other miscellaneous adjustments.
Our management uses non-GAAP measures to evaluate the performance of our core businesses, to estimate future core performance and to compensate employees. Since management finds this measure to be useful, we believe that our investors benefit from seeing our results "through the eyes" of management in addition to seeing our GAAP results. This information facilitates our management's internal comparisons to our historical operating results as well as to the operating results of our competitors.
Our management recognizes that items such as amortization of intangibles can have a material impact on our cash flows and/or our net income. Our GAAP financial statements including our statement of cash flows portray those effects. Although we believe it is useful for investors to see core performance free of special items, investors should understand that the excluded items are actual expenses that may impact the cash available to us for other uses. To gain a complete picture of all effects on the company's profit and loss from any and all events, management does (and investors should) rely upon the GAAP income statement. The non-GAAP numbers focus instead upon the core business of the company, which is only a subset, albeit a critical one, of the company's performance.
Readers are reminded that non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. They should be read in conjunction with the GAAP financial measures. It should be noted as well that our non-GAAP information may be different from the non-GAAP information provided by other companies.
The preliminary non-GAAP net income and diluted EPS reconciliation is estimated based on our current information.
Page 4
AGILENT TECHNOLOGIES, INC.
SEGMENT INFORMATION
(In millions, except where noted)
(Unaudited)
PRELIMINARY
Quarter-over-Quarter
Life Sciences and Applied Markets Group
Q1'24 Q1'23
Revenue

$

846

$

943

Gross Margin, %

60.2

%

61.5

%

Income from Operations

$

236

$

300

Operating margin, %

27.9

%

31.8

%

Diagnostics and Genomics Group
Q1'24 Q1'23
Revenue

$

407

$

432

Gross Margin, %

52.8

%

52.6

%

Income from Operations

$

70

$

73

Operating margin, %

17.3

%

16.9

%

Agilent CrossLab Group
Q1'24 Q1'23
Revenue

$

405

$

381

Gross Margin, %

50.5

%

48.5

%

Income from Operations

$

122

$

103

Operating margin, %

30.2

%

27.0

%

Income from operations reflect the results of our reportable segments under Agilent's management reporting system which are not necessarily in conformity with GAAP financial measures. Income from operations of our reporting segments exclude, among other things, charges related to restructuring and other related costs, asset impairments, amortization of intangibles, transformational initiatives, acquisition and integration costs and change in fair value of contingent consideration.
Readers are reminded that non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. They should be read in conjunction with the GAAP financial measures. It should be noted as well that our non-GAAP information may be different from the non-GAAP information provided by other companies.
The preliminary segment information is estimated based on our current information.
Page 5
AGILENT TECHNOLOGIES, INC.
RECONCILIATIONS OF REVENUE BY SEGMENT
EXCLUDING ACQUISITIONS, DIVESTITURES AND THE IMPACT OF CURRENCY ADJUSTMENTS (CORE)
(in millions)
(Unaudited)
PRELIMINARY
Year-over-Year
GAAP
Year-over-Year
GAAP Revenue by Segment Q1'24 Q1'23 % Change
Life Sciences and Applied Markets Group

$

846

$

943

(10

%)

Diagnostics and Genomics Group

407

432

(6

%)

Agilent CrossLab Group

405

381

6

%

Agilent

$

1,658

$

1,756

(6

%)

Non-GAAP
(excluding Acquisitions & Divestitures)
Year-over-Year
at Constant Currency (a)
Year-over-Year Year-over-Year Percentage Point Impact from Currency Current Quarter Currency Impact (b)
Non GAAP Revenue by Segment Q1'24 Q1'23 % Change % Change
Life Sciences and Applied Markets Group

$

846

$

943

(10

%)

(11

%)

1 ppt

$

7

Diagnostics and Genomics Group

407

430

(5

%)

(6

%)

1 ppt

4

Agilent CrossLab Group

405

381

6

%

5

%

1 ppt

5

Agilent (Core)

$

1,658

$

1,754

(5

%)

(6

%)

1 ppt

$

16

We compare the year-over-year change in revenue excluding the effect of recent acquisitions and divestitures and foreign currency rate fluctuations to assess the performance of our underlying business.
(a) The constant currency year-over-year growth percentage is calculated by recalculating all periods in the comparison period at the foreign currency exchange rates used for accounting during the last month of the current quarter and then using those revised values to calculate the year-over-year percentage change.
(b) The dollar impact from the current quarter currency impact is equal to the total year-over-year dollar change less the constant currency year-over-year change.
The preliminary reconciliation of GAAP revenue adjusted for recent acquisitions and divestitures and impact of currency is estimated based on our current information.
Page 6

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