Sunday, December 10, 2023

Agilent Technologies Inc (A) Reports Mixed Fiscal Year 2023 Results Amid Industry Challenges

  • Fourth-quarter revenue declined by 8.7% reported and 9.7% core year-over-year.
  • GAAP EPS increased by 32% in Q4, while non-GAAP EPS decreased by 10% compared to the same period last year.
  • Full fiscal year 2023 revenue remained flat, with a slight core increase of 1.5% year-over-year.
  • Agilent's fiscal year 2024 outlook anticipates a slow recovery with revenue expected to range between $6.71 billion and $6.81 billion.

On November 20, 2023, Agilent Technologies Inc (

A, Financial) released its 8-K filing, detailing the financial results for the fourth quarter and full fiscal year 2023. The company reported a fourth-quarter revenue of $1.69 billion, which represents an 8.7% decrease on a reported basis and a 9.7% decrease on a core basis from the fourth quarter of 2022. Despite the revenue decline, Agilent's GAAP net income rose to $475 million, with earnings per share (EPS) climbing to $1.62, a 32% increase from the previous year's quarter. However, non-GAAP net income saw a decrease, with EPS dropping by 10% to $1.38.

Fiscal Year 2023 Performance Overview

For the full fiscal year 2023, Agilent's revenue remained flat at $6.83 billion on a reported basis but showed a modest core increase of 1.5% year-over-year. The GAAP net income for the year was $1.240 billion, with EPS remaining steady at $4.19. The non-GAAP net income for the year was $1.609 billion, with a 4% increase in EPS to $5.44.

Segment Performance and Outlook

The Life Sciences and Applied Markets Group (LSAG) experienced a significant revenue decline of 17% reported and 18% core year-over-year in Q4, with a full-year revenue decrease of 4% reported and 2% core. Conversely, the Agilent CrossLab Group (ACG) saw a 6% reported and 4% core increase in Q4 revenue, with an 8% reported and 10% core growth for the full year. The Diagnostics and Genomics Group (DGG) reported a slight 1% increase in revenue on a reported basis and remained flat on a core basis for both the quarter and the full year.

Looking ahead to fiscal year 2024, Agilent expects revenue to be in the range of $6.71 billion to $6.81 billion, which would represent a slight decline to a marginal increase on a reported basis and a core basis, respectively. The non-GAAP EPS is projected to be between $5.44 and $5.55. For the fiscal first quarter, revenue is anticipated to decline by 11.4% to 8.6% reported and 11.3% to 8.5% core, with non-GAAP earnings guidance expected to be in the range of $1.20 to $1.23 per share.

Financial Statements Highlights

Agilent's balance sheet as of October 31, 2023, shows an increase in total assets to $10.763 billion, up from $10.532 billion the previous year. The company's cash and cash equivalents also rose to $1.590 billion, compared to $1.053 billion in 2022. The condensed consolidated statement of cash flows indicates a net cash provided by operating activities of...

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