Executive Summary
Agilent Technologies Inc reported third-quarter 2024 revenues of $1.578 billion, reflecting a decline of 4.4% on a core basis, yet a 300 basis point improvement from Q2 2024. The operating margin improved to 27.4% as a result of enhanced cost efficiency measures aimed at achieving $100 million in annualized savings. Adjusted earnings per share (EPS) came in at $1.32, exceeding guidance by $0.04. In a challenging operating environment, Agilent has witnessed solid growth in services and consumables, with management expressing optimism regarding the acceleration of demand in upcoming quarters. Key growth vectors include the biopharma sector and sustainable solutions, underpinned by recent acquisitions which strengthen Agilentβs digital ecosystem and product offerings.
Key Performance Indicators
QoQ: -8.26% | YoY:150.38%
QoQ: -8.44% | YoY:154.05%
QoQ: -7.62% | YoY:155.26%
Key Insights
1. **Revenue:** $1.578 billion (-5.6% YoY)
2. **Gross Profit:** $855 million (Gross Margin: 54.2%)
3. **Operating Income:** $333 million (Operating Margin: 27.4%)
4. **Net Income:** $282 million
5. **EPS:** $1.32, up 4.1% from guidance.
6. **Operating Cash Flow:** $452 million, benefiting from strong resource management.
7. **Balance Sheet Health:** Cash and equivalents stood at $1.779 billion, with total debt of $2.932 billion reflecting a net leverage ratio of 0.60.
8. **Return on Equity (ROE...
Financial Highlights
1. Revenue: $1.578 billion (-5.6% YoY)
2. Gross Profit: $855 million (Gross Margin: 54.2%)
3. Operating Income: $333 million (Operating Margin: 27.4%)
4. Net Income: $282 million
5. EPS: $1.32, up 4.1% from guidance.
6. Operating Cash Flow: $452 million, benefiting from strong resource management.
7. Balance Sheet Health: Cash and equivalents stood at $1.779 billion, with total debt of $2.932 billion reflecting a net leverage ratio of 0.60.
8. Return on Equity (ROE): 4.78%, indicative of effective management and shareholder returns over the past year.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.58B |
-5.62% |
0.32% |
| Gross Profit |
855.00M |
29.94% |
-0.12% |
| Operating Income |
333.00M |
150.38% |
-8.26% |
| Net Income |
282.00M |
154.05% |
-8.44% |
| EPS |
0.97 |
155.26% |
-7.62% |
Key Financial Ratios
operatingProfitMargin
21.1%
operatingCashFlowPerShare
$1.56
freeCashFlowPerShare
$1.24
dividendPayoutRatio
24.1%
Management Commentary
1. Market Recovery: Padraig McDonnell emphasized, "The Agilent team executed well in the third quarter and posted solid results, delivering better-than-expected revenue and earnings."
2. Cost Efficiency Initiatives: McDonnell further remarked, "We are on track to deliver the incremental annualized savings of $100 million by the end of the fiscal year."
3. Strategic Investments: Bob McMahon stated, "We are seeing good lab activity in Q3 with services plus consumables growing mid-single digits, which is encouraging in a constrained market environment."
"We're investing in our digital ecosystem to further enhance our differentiated customer experience."
β Padraig McDonnell
"We expect a steady improvement in the market and expect that to continue into FY 2025."
β Bob McMahon
Forward Guidance
Agilent has raised its full-year revenue guidance to a range of $6.45 billion to $6.50 billion, reflecting ongoing strategic execution in a mixed macro environment. Management anticipates Q4 revenue to be between $1.641 billion and $1.691 billion, indicating a slight recovery trajectory as operational efficiency measures begin to yield benefits amid expected market stabilization. Investors should monitor the effects of continued investment in biopharma and digital service enhancements while navigating potential macro headwinds.