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Agilent Technologies (A - Free Report) reported first-quarter fiscal 2022 earnings of $1.21 per share, beating the Zacks Consensus Estimate by 3.4%. Further, it increased 14.2% year over year. The bottom line was in line with the prior quarter’s reported figure.
Revenues of $1.67 billion surpassed the Zacks Consensus Estimate by 1.3%. Further, the figure was up 8% on a reported basis and 9% on a core basis from the year-ago quarter. In addition, the figure improved 0.8% from the previous quarter.
The year-over-year increase in revenues was driven by continued strong growth in the pharma market. Also, solid momentum across all operating segments contributed well.
In terms of major markets, Analytical Laboratory and Dx & Clinical accounted for 85% and 15% of total revenues, up 9% and 11% on a core basis, respectively, from the prior-year quarter.
Agilent Technologies, Inc. Price, Consensus and EPS Surprise
Agilent has three reporting segments — Life Sciences & Applied Markets Group (“LSAG”), Agilent Cross Lab Group (“ACG”), and Diagnostics and Genomics Group (“DGG”).
LSAG: The segment accounted for $976 million or 58% of its total revenues, up 6% year over year. This was driven by a positive environment across key end-markets served, especially the Pharma and Chemical & Energy market. Also, strength in Consumables, Spectroscopy, Liquid Chromatography and Mass Spectrometry platforms aided the results.
ACG: Revenues from the segment were $359 million, accounting for 22% of total revenues. Also, the top line improved 8% year over year, driven by strong contract revenues across the portfolio. Also, strong growth across all regions and end-markets served remained a tailwind.
DGG: Revenues increased 15% year over year to $339 million, accounting for the remaining 20% of total revenues. The top line was driven by strength in NASD genomics and cancer diagnostics businesses.
Operating Results
For the fiscal first quarter, gross margin in the LSAG segment expanded 20 basis points (bps) on a year-over-year basis to 60.5%. DGG gross margin expanded 120 bps on a year-over-year basis to 52.8%. ACG gross margin expanded 70 bps to 47.5%.
Research & development costs were $117 million, up 13.6% year over year. Selling, general & administrative expenses were $417 million, which increased 2.5% year over year.
Operating margin for the fiscal first quarter was 26.3%, which expanded 80 bps on a year-over-year basis.
Segment-wise, operating margin for LSAG expanded 30 bps year over year to 28.9%. The DGG segment’s operating margin expanded 150 bps on a year-over-year basis to 20.1%. ACG operating margin was 25.2%, which expanded 210 bps from the year-ago quarter.
Balance Sheet
As of Jan 31, 2022, Agilent’s cash and cash equivalents were $1.11 billion, down from $1.48 billion on Oct 31, 2021.
Accounts receivables were $1.21 billion at the end of fiscal first-quarter 2022, up from $1.17 billion at the end of fourth-quarter fiscal 2021.
Further, long-term debt was $2.730 billion for the reported quarter compared with $2.729 billion in the prior quarter.
Outlook
For the fiscal second quarter, the company expects revenues of $1.595-$1.625 billion, suggesting year-over-year growth between 6.5% and 8.5% on a core basis. The Zacks Consensus Estimate for revenues stands at $1.62 billion.
Non-GAAP earnings per share are expected to be $1.10-1.12. The Zacks Consensus Estimate for earnings is pegged at $1.12 per share.
For fiscal 2022, Agilent raised its revenue guidance from $6.65-$6.73 billion to $6.67-$6.73 billion, implying growth of 5.6-6.5% on a reported basis and 7-8% on a core basis. The Zacks Consensus Estimate for full-year revenues is pegged at $6.70 billion.
Also, management raised its guidance for non-GAAP earnings per share from $4.76-$4.86 to $4.80-$4.90. The Zacks Consensus Estimate for earnings is pegged at $4.82 per share.
Broadcom is scheduled to release first-quarter fiscal 2022 results on Mar 3.It has gained 20.1% over a year. The long-term earnings growth rate for AVGO is currently projected at 14.5%.
Intuit is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 17% over a year. The long-term earnings growth rate for INTU is currently projected at 15.7%.
Zscaler is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 25.6% over a year. The long-term earnings growth rate for ZS is currently projected at 37.1%.
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Agilent (A) Q1 Earnings & Revenues Beat Estimates, Rise Y/Y
Agilent Technologies (A - Free Report) reported first-quarter fiscal 2022 earnings of $1.21 per share, beating the Zacks Consensus Estimate by 3.4%. Further, it increased 14.2% year over year. The bottom line was in line with the prior quarter’s reported figure.
Revenues of $1.67 billion surpassed the Zacks Consensus Estimate by 1.3%. Further, the figure was up 8% on a reported basis and 9% on a core basis from the year-ago quarter. In addition, the figure improved 0.8% from the previous quarter.
The year-over-year increase in revenues was driven by continued strong growth in the pharma market. Also, solid momentum across all operating segments contributed well.
In terms of major markets, Analytical Laboratory and Dx & Clinical accounted for 85% and 15% of total revenues, up 9% and 11% on a core basis, respectively, from the prior-year quarter.
Agilent Technologies, Inc. Price, Consensus and EPS Surprise
Agilent Technologies, Inc. price-consensus-eps-surprise-chart | Agilent Technologies, Inc. Quote
Segmental Top-Line Details
Agilent has three reporting segments — Life Sciences & Applied Markets Group (“LSAG”), Agilent Cross Lab Group (“ACG”), and Diagnostics and Genomics Group (“DGG”).
LSAG: The segment accounted for $976 million or 58% of its total revenues, up 6% year over year. This was driven by a positive environment across key end-markets served, especially the Pharma and Chemical & Energy market. Also, strength in Consumables, Spectroscopy, Liquid Chromatography and Mass Spectrometry platforms aided the results.
ACG: Revenues from the segment were $359 million, accounting for 22% of total revenues. Also, the top line improved 8% year over year, driven by strong contract revenues across the portfolio. Also, strong growth across all regions and end-markets served remained a tailwind.
DGG: Revenues increased 15% year over year to $339 million, accounting for the remaining 20% of total revenues. The top line was driven by strength in NASD genomics and cancer diagnostics businesses.
Operating Results
For the fiscal first quarter, gross margin in the LSAG segment expanded 20 basis points (bps) on a year-over-year basis to 60.5%. DGG gross margin expanded 120 bps on a year-over-year basis to 52.8%. ACG gross margin expanded 70 bps to 47.5%.
Research & development costs were $117 million, up 13.6% year over year. Selling, general & administrative expenses were $417 million, which increased 2.5% year over year.
Operating margin for the fiscal first quarter was 26.3%, which expanded 80 bps on a year-over-year basis.
Segment-wise, operating margin for LSAG expanded 30 bps year over year to 28.9%. The DGG segment’s operating margin expanded 150 bps on a year-over-year basis to 20.1%. ACG operating margin was 25.2%, which expanded 210 bps from the year-ago quarter.
Balance Sheet
As of Jan 31, 2022, Agilent’s cash and cash equivalents were $1.11 billion, down from $1.48 billion on Oct 31, 2021.
Accounts receivables were $1.21 billion at the end of fiscal first-quarter 2022, up from $1.17 billion at the end of fourth-quarter fiscal 2021.
Further, long-term debt was $2.730 billion for the reported quarter compared with $2.729 billion in the prior quarter.
Outlook
For the fiscal second quarter, the company expects revenues of $1.595-$1.625 billion, suggesting year-over-year growth between 6.5% and 8.5% on a core basis. The Zacks Consensus Estimate for revenues stands at $1.62 billion.
Non-GAAP earnings per share are expected to be $1.10-1.12. The Zacks Consensus Estimate for earnings is pegged at $1.12 per share.
For fiscal 2022, Agilent raised its revenue guidance from $6.65-$6.73 billion to $6.67-$6.73 billion, implying growth of 5.6-6.5% on a reported basis and 7-8% on a core basis. The Zacks Consensus Estimate for full-year revenues is pegged at $6.70 billion.
Also, management raised its guidance for non-GAAP earnings per share from $4.76-$4.86 to $4.80-$4.90. The Zacks Consensus Estimate for earnings is pegged at $4.82 per share.
Zacks Rank & Other Stocks to Consider
Currently, Agilent carries a Zacks Rank #2 (Buy).
Other similar-ranked stocks in the broader technology sector include Broadcom (AVGO - Free Report) , Intuit (INTU - Free Report) and Zscaler (ZS - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Broadcom is scheduled to release first-quarter fiscal 2022 results on Mar 3.It has gained 20.1% over a year. The long-term earnings growth rate for AVGO is currently projected at 14.5%.
Intuit is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 17% over a year. The long-term earnings growth rate for INTU is currently projected at 15.7%.
Zscaler is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 25.6% over a year. The long-term earnings growth rate for ZS is currently projected at 37.1%.