Delivers better-than-expected performance;
raises midpoint of guidance
Highlights
- Revenue of $1.58 billion, down 5.6% reported and 4.4% core(1)
from the third quarter of 2023.
- GAAP net income of $282 million; earnings per share (EPS) of
$0.97, up 155% from the third quarter of 2023.
- Non-GAAP(2) net income of $385 million; EPS of $1.32, down 8%
from the third quarter of 2023.
- Full-year revenue outlook revised at $6.450 billion to $6.500
billion. Fiscal year 2024 non-GAAP(3) earnings guidance also
revised at a range of $5.21 to $5.25 per share.
- Fourth-quarter revenue outlook expected at $1.641 billion to
$1.691 billion with non-GAAP(3) EPS of $1.38 to $1.42.
Agilent Technologies Inc. (NYSE: A) today reported revenue of
$1.58 billion for the third quarter ended July 31, 2024, a decline
of 5.6% reported and 4.4% core(1) compared to the third quarter of
2023.
Third-quarter GAAP net income was $282 million, or $0.97 per
share. This compares with $111 million, or $0.38 per share, in the
third quarter of fiscal year 2023. Non-GAAP(2) net income was $385
million, or $1.32 per share during the quarter, compared with $422
million or $1.43 per share during the third quarter a year ago.
“The Agilent team executed well in Q3, delivering revenue and
EPS above the top end of our guidance,” said Agilent President and
CEO Padraig McDonnell. “While market conditions continued to be
challenged during the quarter, we saw steady signs of improvement
as anticipated. We continue to make investments in our most
promising growth opportunities. And we are mobilizing the
organization to accelerate value creation through strategic
transformation initiatives, which will drive margin expansion and
growth—and increase our execution capabilities.”
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 third-quarter revenue of $782 million, a decline of 8%
reported and 7% core(1) year-over-year. LSAG’s operating margin for
the quarter was 28.4%.
Agilent CrossLab Group
The Agilent CrossLab Group (ACG) reported third-quarter revenue
of $411 million, an increase of 4% reported and 5% core(1)
year-over-year. ACG’s operating margin for the quarter was
34.0%.
Diagnostics and Genomics Group
The Diagnostics and Genomics Group (DGG) reported third-quarter
revenue of $385 million, a decrease of 9% reported and 8% core(1)
year-over-year. DGG’s operating margin for the quarter was
18.3%.
Full Year 2024 and Fourth-Quarter Outlook
Full-year revenue outlook is revised at $6.450 billion to $6.500
billion, representing a range of down 5.6% to 4.9% reported and
down 5.0% to 4.3% core(1). Fiscal year 2024 non-GAAP(3) earnings
guidance is revised at a range of $5.21 to $5.25 per share.
The outlook for fourth-quarter revenue is expected in the range
of $1.641 billion to $1.691 billion, a decline of 2.8% to an
increase of 0.2% reported and a decline of 1.9% to an increase of
1.1% core(1). Fourth-quarter non-GAAP(3) earnings guidance is
expected in the range of $1.38 to $1.42 per share.
The outlook is based on forecasted currency exchange rates.
Conference Call
Agilent’s management will present additional details regarding
the company’s third-quarter 2024 financial results on a conference
call with investors today at 1:30 p.m. PDT. This event will be
broadcast live online in listen-only mode. To listen to the
webcast, select the “Q3 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,
non-GAAP earnings guidance for Q4 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
quarterly report on Form 10-Q for the fiscal quarter ended April
30, 2024. 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 Q3 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 Q4 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 and
net (gain) loss on equity securities. 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 Q4 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
$22 million per quarter.
AGILENT TECHNOLOGIES, INC. CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS (In millions, except per share
data) (Unaudited) PRELIMINARY
Three Months Ended Nine Months Ended July 31,
July 31,
2024
2023
2024
2023
Net revenue
$
1,578
$
1,672
$
4,809
$
5,145
Costs and expenses: Cost of products and services
723
1,014
2,190
2,595
Research and development
127
118
368
367
Selling, general and administrative
395
407
1,171
1,241
Total costs and expenses
1,245
1,539
3,729
4,203
Income from operations
333
133
1,080
942
Interest income
19
13
56
34
Interest expense
(22
)
(24
)
(64
)
(73
)
Other income (expense), net
13
10
48
16
Income before taxes
343
132
1,120
919
Provision for income taxes
61
21
182
154
Net income
$
282
$
111
$
938
$
765
Net income per share: Basic
$
0.97
$
0.38
$
3.21
$
2.59
Diluted
$
0.97
$
0.38
$
3.20
$
2.58
Weighted average shares used in computing net income per
share: Basic
290
294
292
295
Diluted
291
295
293
296
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 July 31, October 31,
2024
2023
ASSETS Current assets: Cash and cash equivalents
$
1,779
$
1,590
Accounts receivable, net
1,227
1,291
Inventory
978
1,031
Other current assets
272
274
Total current assets
4,256
4,186
Property, plant and equipment, net
1,446
1,270
Goodwill
3,965
3,960
Other intangible assets, net
392
475
Long-term investments
186
164
Other assets
751
708
Total assets
$
10,996
$
10,763
LIABILITIES AND EQUITY Current liabilities: Accounts
payable
$
497
$
418
Employee compensation and benefits
309
371
Deferred revenue
524
505
Short-term debt
795
—
Other accrued liabilities
264
309
Total current liabilities
2,389
1,603
Long-term debt
2,137
2,735
Retirement and post-retirement benefits
96
103
Other long-term liabilities
471
477
Total liabilities
5,093
4,918
Total Equity: Stockholders' equity: Preferred stock; $0.01
par value; 125,000,000 shares authorized; none issued and
outstanding at July 31, 2024 and October 31, 2023
—
—
Common stock; $0.01 par value, 2,000,000,000 shares authorized;
287,529,636 shares at July 31, 2024 and 292,123,241 shares at
October 31, 2023, issued and outstanding
3
3
Additional paid-in-capital
5,458
5,387
Retained earnings
773
782
Accumulated other comprehensive loss
(331
)
(327
)
Total stockholders' equity
5,903
5,845
Total liabilities and stockholders' equity
$
10,996
$
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 Nine Months Ended July
31, July 31,
2024
2023
Cash flows from operating activities: Net income
$
938
$
765
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization
188
209
Share-based compensation
103
97
Deferred taxes
(8
)
(69
)
Excess and obsolete inventory related charges
33
27
Net (gain) loss on equity securities
(6
)
13
Asset impairment charges
8
277
Change in fair value of contingent consideration
—
1
Other non-cash (income) expense, net
2
4
Changes in assets and liabilities: Accounts receivable, net
67
113
Inventory
15
(53
)
Accounts payable
78
(117
)
Employee compensation and benefits
(65
)
(137
)
Other assets and liabilities
(83
)
126
Net cash provided by operating activities (a)
1,270
1,256
Cash flows from investing activities: Payments to acquire
property, plant and equipment
(285
)
(214
)
Proceeds from sale of equity securities
—
5
Payments to acquire equity securities
(5
)
(3
)
Proceeds from convertible note
—
4
Payments in exchange for convertible note
(11
)
(11
)
Payments to acquire businesses and intangible assets, net of cash
acquired
(3
)
(51
)
Net cash used in investing activities
(304
)
(270
)
Cash flows from financing activities: Proceeds from issuance
of common stock under employee stock plans
76
65
Payment of taxes related to net share settlement of equity awards
(27
)
(53
)
Payments for repurchase of common stock
(815
)
(495
)
Payments of dividends
(206
)
(199
)
Repayments of long-term debt
(180
)
—
Net proceeds from (repayment of) short-term debt
375
20
Payment for contingent consideration
—
(67
)
Net cash used in financing activities
(777
)
(729
)
Effect of exchange rate movements
—
19
Net increase in cash, cash equivalents and restricted cash
189
276
Cash, cash equivalents and restricted cash at beginning of
period
1,593
1,056
Cash, cash equivalents and restricted cash at end of period
$
1,782
$
1,332
Reconciliation of cash, cash equivalents and
restricted cash to the condensed consolidated balance sheet:
Cash and cash equivalents
$
1,779
$
1,329
Restricted cash, included in other assets
3
3
Total cash, cash equivalents and restricted cash
$
1,782
$
1,332
(a) Cash payments included in operating activities:
Income tax payments, net of refunds received
$
284
$
143
Interest payments, net of capitalized interest
$
50
$
60
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 data) (Unaudited)
PRELIMINARY Three Months Ended Nine Months
Ended July 31, July 31,
2024
2023
2024
2023
Net Income Diluted EPS Net Income Diluted
EPS Net Income Diluted EPS Net Income
Diluted EPS GAAP net income
$
282
$
0.97
$
111
$
0.38
$
938
$
3.20
$
765
$
2.58
Non-GAAP adjustments: Restructuring and other related costs
67
0.23
—
—
71
0.24
—
—
Asset impairments
—
—
277
0.94
8
0.03
277
0.94
Intangible amortization
25
0.09
38
0.13
77
0.26
112
0.38
Transformational initiatives
1
—
19
0.06
5
0.02
31
0.10
Acquisition and integration costs
4
0.01
5
0.02
5
0.02
12
0.04
Net (gain) loss on equity securities
(1
)
—
(1
)
—
(2
)
(0.01
)
15
0.05
Change in fair value of contingent consideration
—
—
—
—
—
—
1
—
Other
3
0.01
20
0.07
4
0.01
31
0.11
Adjustment for taxes (a)
4
0.01
(47
)
(0.17
)
15
0.06
(39
)
(0.13
)
Non-GAAP net income
$
385
$
1.32
$
422
$
1.43
$
1,121
$
3.83
$
1,205
$
4.07
(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 and nine months ended July 31,
2024, management used a non-GAAP effective tax rate of 13.00%. For
the three and nine months ended July 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 (gain) 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, 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 and 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, tax,
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 (gain)
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 certain legal costs and settlements, special
compliance costs, acceleration of stock-based compensation expense
and 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 Q3'24 Q3'23 Revenue
$
782
$
854
Gross Margin, %
60.2
%
60.1
%
Income from Operations
$
222
$
265
Operating margin, %
28.4
%
31.0
%
Diagnostics and Genomics Group Q3'24
Q3'23 Revenue
$
385
$
422
Gross Margin, %
51.8
%
53.5
%
Income from Operations
$
70
$
96
Operating margin, %
18.3
%
22.7
%
Agilent CrossLab Group Q3'24
Q3'23 Revenue
$
411
$
396
Gross Margin, %
52.1
%
50.9
%
Income from Operations
$
140
$
129
Operating margin, %
34.0
%
32.7
%
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 and acquisition and integration costs. 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 Q3'24 Q3'23 % Change
Life Sciences and Applied Markets Group
$
782
$
854
(8%)
Diagnostics and Genomics Group
385
422
(9%)
Agilent CrossLab Group
411
396
4%
Agilent
$
1,578
$
1,672
(6%)
Non-GAAP(excluding Acquisitions &
Divestitures) Year-over-Yearat Constant Currency (a)
Year-over-Year Year-over-Year Percentage Point
Impact from Currency Current Quarter Currency Impact (b)
Non GAAP Revenue by Segment
Q3'24 Q3'23 % Change % Change
Life Sciences and Applied Markets Group
$
782
$
854
(8%)
(7%)
-1 ppt
$
(9
)
Diagnostics and Genomics Group
385
420
(8%)
(8%)
—
(3
)
Agilent CrossLab Group
411
396
4%
5%
-1 ppt
(6
)
Agilent (Core)
$
1,578
$
1,670
(5%)
(4%)
-1 ppt
$
(18
)
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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Investor Contact: Parmeet Ahuja +1 408-345-8948
parmeet_ahuja@agilent.com
Media Contact: Tom Beermann +1 408-553-2914
tom.beermann@agilent.com
Agilent Technologies (NYSE:A)
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Agilent Technologies (NYSE:A)
과거 데이터 주식 차트
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