We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Agilent Technologies (A - Free Report) reported first-quarter fiscal 2023 earnings of $1.37 per share, beating the Zacks Consensus Estimate by 4.6%. The bottom line increased 13% from the year-ago fiscal quarter’s level.
Revenues of $1.76 billion surpassed the Zacks Consensus Estimate of $1.69 billion. The top line was up 5% on a reported basis and 10% on a core basis from the respective year-ago fiscal quarter’s levels.
Top-line growth was driven by growing momentum across the pharma and applied markets. Strong performances in China and Europe also contributed well.
Segmental Top Line Details
Agilent has three reporting segments, namely Life Sciences & Applied Markets Group (LSAG), Agilent Cross Lab Group (ACG) and Diagnostics and Genomics Group (DGG).
LSAG: The segment accounted for $1.03 billion or 58.8% of its total revenues, up 6% on a reported basis and 11% on a core basis from the respective prior-year fiscal quarter’s levels. This was driven by solid momentum in the Chemical & Advanced Materials market, owing to strong demand for materials used in the manufacturing of semiconductors and batteries. Strength in LC+LCMS and spectroscopy also aided results.
ACG: Revenues from the segment were $381 million, accounting for 21.7% of total revenues. Also, the top line improved 6% from the prior-year fiscal quarter’s reading on a reported basis and 13% on a core basis, driven by service business growth on the back of strong customer-lab operations. Further, strong renewals for support contracts and solid momentum across the enterprise services business were positives.
DGG: Revenues increased 3% from the prior-year fiscal quarter’s figure on a reported basis and 8% on a core basis to $342 million, accounting for the remaining 19.5% of total revenues. Segmental growth was attributed to strength in NASD and IHC cancer diagnostics.
Agilent Technologies, Inc. Price, Consensus and EPS Surprise
For the fiscal first quarter, gross margin in the LSAG segment expanded 70 basis points (bps) to 61.2% from the prior-year fiscal quarter’s number. ACG gross margin expanded 100 bps to 48.5%. DGG’s gross margin contracted 160 bps from the year-ago fiscal quarter’s actuals to 51.2%.
Research & development (R&D) costs were $123 million, up 5.1% from the prior-year fiscal quarter’s number. Selling, general & administrative (SG&A) expenses were $419 million, up 0.5% from the year-earlier fiscal quarter’s figure. As a percentage of revenues, R&D expenses expanded 10 bps year over year to 7%. Meanwhile, SG&A expenses contracted 100 bps year over year to 23.9%.
Operating margin for the fiscal first quarter was 24.3%, which expanded 180 bps from the year-earlier fiscal quarter’s figure.
Segment wise, the operating margin for LSAG was up 150 bps from the year-earlier fiscal quarter’s level at 30.4%. ACG’s operating margin was 27%, up 180 bps from the year-ago fiscal quarter’s level. DGG segment’s operating margin contracted 290 bps to 17.2% from the year-ago fiscal quarter’s figure.
Balance Sheet & Cash Flow
As of Jan 31, 2023, Agilent’s cash and cash equivalents were $1.25 billion, up from $1.05 billion on Oct 31, 2022.
Accounts receivables were $1.46 billion at the end of first-quarter fiscal 2023, up from $1.41 billion at the end of fourth-quarter fiscal 2022.
Long-term debt was $2.733 billion for the reported quarter, which remained flat compared with the prior fiscal quarter.
Agilent generated $296 million in cash from operations during the reported quarter.
Further, it returned $142 million to shareholders, out of which dividend payments accounted for $67 million and share repurchases accounted for the remaining $75 million.
Guidance
For the fiscal second quarter of 2023, management expects revenues of $1.655-$1.680 billion, suggesting growth between 6% and 7.5% on a core basis from the year-ago fiscal quarter’s actuals. The Zacks Consensus Estimate for revenues stands at $1.64 billion.
Non-GAAP earnings per share are expected to be in the range of $1.24-$1.27. The Zacks Consensus Estimate for earnings is pegged at $1.28 per share.
For fiscal 2023, management raised its revenue guidance from the band of $6.90-$7 billion to $7.03-$7.1 billion, implying growth of 2.7-3.7% on a reported basis and 5.5-6.5% on a core basis from the respective fiscal 2022 figures. The Zacks Consensus Estimate for full-fiscal revenues is pegged at $6.95 billion.
Management also raised the guidance for fiscal 2023 non-GAAP earnings per share from $5.61-$5.69 to $5.65-$5.70. The Zacks Consensus Estimate for earnings is pegged at $5.64 per share.
Zacks Rank & Other Stocks to Consider
Currently, Agilent Technologies carries a Zacks Rank #2 (Buy).
Image: Bigstock
Agilent's (A) Q1 Earnings & Revenues Beat Estimates, Rise Y/Y
Agilent Technologies (A - Free Report) reported first-quarter fiscal 2023 earnings of $1.37 per share, beating the Zacks Consensus Estimate by 4.6%. The bottom line increased 13% from the year-ago fiscal quarter’s level.
Revenues of $1.76 billion surpassed the Zacks Consensus Estimate of $1.69 billion. The top line was up 5% on a reported basis and 10% on a core basis from the respective year-ago fiscal quarter’s levels.
Top-line growth was driven by growing momentum across the pharma and applied markets. Strong performances in China and Europe also contributed well.
Segmental Top Line Details
Agilent has three reporting segments, namely Life Sciences & Applied Markets Group (LSAG), Agilent Cross Lab Group (ACG) and Diagnostics and Genomics Group (DGG).
LSAG: The segment accounted for $1.03 billion or 58.8% of its total revenues, up 6% on a reported basis and 11% on a core basis from the respective prior-year fiscal quarter’s levels. This was driven by solid momentum in the Chemical & Advanced Materials market, owing to strong demand for materials used in the manufacturing of semiconductors and batteries. Strength in LC+LCMS and spectroscopy also aided results.
ACG: Revenues from the segment were $381 million, accounting for 21.7% of total revenues. Also, the top line improved 6% from the prior-year fiscal quarter’s reading on a reported basis and 13% on a core basis, driven by service business growth on the back of strong customer-lab operations. Further, strong renewals for support contracts and solid momentum across the enterprise services business were positives.
DGG: Revenues increased 3% from the prior-year fiscal quarter’s figure on a reported basis and 8% on a core basis to $342 million, accounting for the remaining 19.5% of total revenues. Segmental growth was attributed to strength in NASD and IHC cancer diagnostics.
Agilent Technologies, Inc. Price, Consensus and EPS Surprise
Agilent Technologies, Inc. price-consensus-eps-surprise-chart | Agilent Technologies, Inc. Quote
Operating Results
For the fiscal first quarter, gross margin in the LSAG segment expanded 70 basis points (bps) to 61.2% from the prior-year fiscal quarter’s number. ACG gross margin expanded 100 bps to 48.5%. DGG’s gross margin contracted 160 bps from the year-ago fiscal quarter’s actuals to 51.2%.
Research & development (R&D) costs were $123 million, up 5.1% from the prior-year fiscal quarter’s number. Selling, general & administrative (SG&A) expenses were $419 million, up 0.5% from the year-earlier fiscal quarter’s figure. As a percentage of revenues, R&D expenses expanded 10 bps year over year to 7%. Meanwhile, SG&A expenses contracted 100 bps year over year to 23.9%.
Operating margin for the fiscal first quarter was 24.3%, which expanded 180 bps from the year-earlier fiscal quarter’s figure.
Segment wise, the operating margin for LSAG was up 150 bps from the year-earlier fiscal quarter’s level at 30.4%. ACG’s operating margin was 27%, up 180 bps from the year-ago fiscal quarter’s level. DGG segment’s operating margin contracted 290 bps to 17.2% from the year-ago fiscal quarter’s figure.
Balance Sheet & Cash Flow
As of Jan 31, 2023, Agilent’s cash and cash equivalents were $1.25 billion, up from $1.05 billion on Oct 31, 2022.
Accounts receivables were $1.46 billion at the end of first-quarter fiscal 2023, up from $1.41 billion at the end of fourth-quarter fiscal 2022.
Long-term debt was $2.733 billion for the reported quarter, which remained flat compared with the prior fiscal quarter.
Agilent generated $296 million in cash from operations during the reported quarter.
Further, it returned $142 million to shareholders, out of which dividend payments accounted for $67 million and share repurchases accounted for the remaining $75 million.
Guidance
For the fiscal second quarter of 2023, management expects revenues of $1.655-$1.680 billion, suggesting growth between 6% and 7.5% on a core basis from the year-ago fiscal quarter’s actuals. The Zacks Consensus Estimate for revenues stands at $1.64 billion.
Non-GAAP earnings per share are expected to be in the range of $1.24-$1.27. The Zacks Consensus Estimate for earnings is pegged at $1.28 per share.
For fiscal 2023, management raised its revenue guidance from the band of $6.90-$7 billion to $7.03-$7.1 billion, implying growth of 2.7-3.7% on a reported basis and 5.5-6.5% on a core basis from the respective fiscal 2022 figures. The Zacks Consensus Estimate for full-fiscal revenues is pegged at $6.95 billion.
Management also raised the guidance for fiscal 2023 non-GAAP earnings per share from $5.61-$5.69 to $5.65-$5.70. The Zacks Consensus Estimate for earnings is pegged at $5.64 per share.
Zacks Rank & Other Stocks to Consider
Currently, Agilent Technologies carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer & Technology sector are Arista Networks (ANET - Free Report) , Baidu (BIDU - Free Report) and AMETEK (AME - Free Report) . While Arista Networks and Baidu sport a Zacks Rank #1 (Strong Buy), AMETEK carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks has gained 12.7% in the past year. The long-term earnings growth rate for ANET is currently projected at 14.2%.
Baidu has lost 14.1% in the past year. The long-term earnings growth rate for BIDU is currently projected at 19.4%.
AMETEK shares have gained 8.1% in the past year. The long-term earnings growth rate for AME is currently projected at 8.8%.