Agilent Technologies, Inc.
CEO : Mr. Michael R. McMullen
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2023 Q1 | 4.9% YoY | 13.3% | 26.6% | 2022-11-21 |
Robert McMahon says,
Revenue Performance
- Q4 revenue was $1.85 billion, up 17.5% core and 11.4% on a reported basis.
- All end markets and regions grew during the quarter, with China leading the way with 44% growth.
- Pharma grew 20% in the quarter, representing 37% of Agilent’s revenue.
- Chemicals and Advanced Materials led growth for us during the quarter at 27%.
- The Environmental & Forensics market posted 18% growth with particular strength in the Americas.
Outlook for Fiscal Year 2023
- Revenue is expected to be in the range of $6.9 billion to $7 billion, with core growth in the range of 5% to 6.5% and currency negatively affecting reported growth by 430 basis points.
- Fiscal 2023 non-GAAP EPS is expected to be in the range of $5.61 to $5.69, representing a growth rate of 7.5% to 9% versus the prior year.
- Operating margin expansion is expected for FY ’23 despite ongoing currency headwinds and a continued inflationary environment.
Cash Flow and Balance Sheet
- Operating cash flow of $448 million was generated in Q4, with $70 million invested in capital expenditures.
- Almost $1.4 billion was returned to shareholders through $250 million in dividends and a bit more than $1.1 billion in share repurchases.
- The balance sheet remains healthy with a net leverage ratio of 0.8.
Dividend Increase
- A dividend increase of 7% has been announced, providing shareholders with another source of value.
Mike McMullen says,
Revenue and Earnings
- Q4 revenue of $1.85 billion, up more than 17% core
- Operating margins of 29.1%, up 260 basis points from last year
- Earnings per share of $1.53, up 26%
- Full year revenue of $6.85 billion, core revenue growth of 12%
- Operating margin of 27.1% for the year, up 160 basis points
- Earnings per share of $5.22 per share, up 20% for the year
End Market Highlights
- Pharma market posted 20% growth on top of 21% in Q4 last year
- Chemicals & Advanced Materials business grew 27%
- Food market grew 20% on strong end-of-year demand in China
Regional Performance
- China led the way with stellar 44% growth as demand remains strong
- Europe exceeded expectations by delivering double-digit growth in the quarter
Performance by Business Unit
- Life Science and Applied Markets Group posted revenue of $1.12 billion, growth of 22%
- Agilent CrossLab Group posted revenue of $381 million, up 14% core
- Diagnostics and Genomics Group delivered revenue of $352 million, up 8% core
Awards and Recognition
- Agilent recognized as a world leader in advanced manufacturing by the World Economic Forum Global Lighthouse Network
- New multimillion-dollar partnership with Delaware State University geared towards increasing the number of underrepresented students entering stem fields
- Agilent certified as a great place to work by the Great Place to Work Institute in more than 20 countries and regions around the world during the quarter
Q & A sessions,
Strong Results in China
- The company was pleased with the results for China, not only in the quarter but for the year.
- 44% increase in Q4 wasn’t just about catch-up from deferred revenue due to COVID.
- The business does materialize and the strength of the business continues to be there across multiple end markets, led by pharma, chemical.
- Expecting pharma and the CAM marketplace to be strong, in particular, a lot of business on the renewable energy and HPI side in China.
- The Advanced Materials segment is expected to sustain the growth in China in ’23.
Expectations for High Singles Growth in China in 2023
- The company is looking at maybe high singles for China for next year (2023).
No bad stock 