Executive Summary
In Q2 2024, Agilent Technologies Inc reported revenues of $1.573 billion, reflecting a 7.4% decline year-over-year and an 8.4% decline on a reported basis. This downturn comes against challenging year-ago comparisons that saw a 9.5% increase. Despite these challenges, Agilent's management noted that their book-to-bill ratio was above one and order growth year-over-year returned for the first time in seven quarters, signaling potential stabilization ahead. The company has adjusted its full-year revenue guidance to $6.42 billion to $6.5 billion, reflecting a forecasted decline of 4.3% to 5.4% for the year, alongside an EPS expectation of $5.15 to $5.25. Management emphasized a strategic focus on cost-saving measures and targeted investments in high-growth opportunities as critical steps to navigating this turbulence during their earnings call.
Key Performance Indicators
Revenue
1.57B
QoQ: -5.13% | YoY:-8.39%
Gross Profit
856.00M
54.42% margin
QoQ: -6.24% | YoY:-7.36%
Operating Income
363.00M
QoQ: -9.25% | YoY:-5.22%
Net Income
308.00M
QoQ: -11.49% | YoY:1.99%
EPS
1.05
QoQ: -11.76% | YoY:2.94%
Revenue Trend
Margin Analysis
Key Insights
- The decline in revenue was predominantly from reduced demand across all end markets, with the most significant contributions from the Pharma sector, which saw an 11% drop.
- The Americas and Europe slightly outperformed expectations while China lagged notably, down 21%.
- Management indicated that the gross margin improved under cost discipline and productivity measures, despite lower demand, highlighting a robust operational approach to maintain profitability.