Agilent Technologies, Inc. (A) Bundle
A Brief History of Agilent Technologies, Inc.
Company Overview
Agilent Technologies, Inc. is a global leader in life sciences, diagnostics, and applied chemical markets. Established in 1999 as a spin-off from Hewlett-Packard, Agilent has evolved to focus on providing innovative solutions in the fields of analytical instruments, software, services, and consumables.
Recent Financial Performance
As of July 31, 2024, Agilent reported a net income of $938 million for the nine months ended July 31, 2024, compared to $765 million for the same period in 2023. The earnings per share (EPS) for the nine months ended July 31, 2024, were $3.20 diluted, an increase from $2.58 in the previous year.
| Financial Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) | Change |
|---|---|---|---|
| Net Income | $938 million | $765 million | +23% |
| EPS (Diluted) | $3.20 | $2.58 | +24% |
| Cash Provided by Operations | $1,270 million | $1,256 million | +1% |
| Dividends Paid | $206 million | $199 million | +4% |
Stock Repurchase Programs
Agilent has actively engaged in stock repurchase programs to enhance shareholder value. In the nine months ended July 31, 2024, the company repurchased 5.991 million shares for $815 million under its 2023 repurchase program, which authorizes up to $2.0 billion in repurchases. As of July 31, 2024, the remaining authorization for repurchases under this program was approximately $709 million.
Operational Segments
Agilent operates through three main segments:
- Life Sciences and Applied Markets
- Diagnostics and Genomics
- Agilent CrossLab
In the first quarter of fiscal year 2024, Agilent reorganized its operating segments to enhance growth opportunities, moving its cell analysis business to the Diagnostics and Genomics segment.
Research and Development Investments
Agilent continues to invest heavily in research and development (R&D), spending $368 million in the nine months ended July 31, 2024, compared to $367 million in the same period in 2023. This commitment to R&D is critical for maintaining its competitive edge in the market.
Debt and Financing Activities
As of July 31, 2024, Agilent had $420 million in borrowings outstanding under a term loan facility due to mature on April 15, 2025, with a weighted average interest rate of 6.19%. The company prepaid $180 million of this term loan during the nine months ended July 31, 2024.
| Debt Type | Amount Outstanding (as of July 31, 2024) | Interest Rate |
|---|---|---|
| Term Loan Facility | $420 million | 6.19% |
| Senior Notes | $2,137 million | Varies |
Market Trends and Challenges
Agilent faces ongoing challenges from fluctuating foreign currency exchange rates and rising interest rates. Approximately 47% of its revenue in the nine months ended July 31, 2024, was generated in U.S. dollars, indicating a strong reliance on the domestic market amidst global operations.
A Who Owns Agilent Technologies, Inc. (A)
Major Shareholders
As of 2024, the ownership structure of Agilent Technologies, Inc. (A) is characterized by a mix of institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Name | Ownership Percentage | Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.10% | 23,000,000 |
| Institutional Investor | BlackRock, Inc. | 7.80% | 22,500,000 |
| Institutional Investor | State Street Corporation | 5.50% | 16,000,000 |
| Individual Investor | Robert F. McCoy (CEO) | 0.30% | 900,000 |
| Institutional Investor | Fidelity Investments | 4.50% | 13,000,000 |
| Other | Others | 73.80% | 213,000,000 |
Stock Ownership Breakdown
The following table provides a breakdown of stock ownership by category as of July 31, 2024:
| Ownership Category | Shares Outstanding | Percentage of Total |
|---|---|---|
| Institutional Investors | 75,500,000 | 26.20% |
| Insider Ownership | 900,000 | 0.30% |
| Retail Investors | 209,000,000 | 73.50% |
Recent Shareholder Changes
In the most recent quarter, Agilent Technologies experienced a shift in its institutional ownership, with significant transactions reported:
- Vanguard increased its holdings by 1.2 million shares.
- BlackRock reduced its stake by 500,000 shares.
- Fidelity Investments increased its position by 1 million shares.
Market Capitalization and Performance
As of July 31, 2024, Agilent Technologies, Inc. had a market capitalization of approximately $23 billion. The stock has shown a year-to-date performance of approximately 12% increase, reflecting strong investor confidence despite challenging market conditions.
Dividend Distribution
Agilent Technologies declared a cash dividend of $0.236 per share during the three months ended July 31, 2024, totaling approximately $68 million. For the nine months ended July 31, 2024, the total cash dividends amounted to approximately $206 million, reflecting a steady commitment to returning value to shareholders.
Conclusion
The ownership structure of Agilent Technologies, Inc. as of 2024 reveals a robust mix of institutional and retail investors, with a focus on long-term growth strategies and shareholder returns. The company continues to engage with its major shareholders to align interests and drive performance.
Agilent Technologies, Inc. (A) Mission Statement
Mission Statement Overview
The mission of Agilent Technologies, Inc. is to deliver innovative solutions that enable customers to achieve their laboratory goals. The company emphasizes its commitment to enhancing the quality of life through scientific discovery, advancing health care, and ensuring the safety of the environment.
Financial Performance
As of 2024, Agilent Technologies reported net revenues of:
| Period | Net Revenue (in millions) | Year-over-Year Change |
|---|---|---|
| Three Months Ended July 31, 2024 | $1,578 | (6%) |
| Nine Months Ended July 31, 2024 | $4,809 | (7%) |
Segment Revenue Breakdown
The revenue breakdown by segment for the three and nine months ended July 31, 2024 is as follows:
| Segment | Three Months Revenue (in millions) | Nine Months Revenue (in millions) | Year-over-Year Change (Three Months) | Year-over-Year Change (Nine Months) |
|---|---|---|---|---|
| Life Sciences and Applied Markets | $782 | $2,382 | (8%) | (11%) |
| Diagnostics and Genomics | $385 | $1,209 | (9%) | (8%) |
| Agilent CrossLab | $411 | $1,218 | 4% | 5% |
Net Income and Cash Flow
Agilent's net income for the three and nine months ended July 31, 2024 was:
| Period | Net Income (in millions) |
|---|---|
| Three Months Ended July 31, 2024 | $282 |
| Nine Months Ended July 31, 2024 | $938 |
Cash provided by operations during the nine months ended July 31, 2024 was:
| Cash Flow Type | Amount (in millions) |
|---|---|
| Cash Provided by Operating Activities | $1,270 |
Research and Development Investment
Agilent Technologies continues to invest in innovation, with research and development expenses reported as:
| Period | R&D Expenses (in millions) |
|---|---|
| Three Months Ended July 31, 2024 | $62 |
| Nine Months Ended July 31, 2024 | $192 |
Dividends
During the three and nine months ended July 31, 2024, Agilent Technologies declared dividends of:
| Period | Dividend per Share | Total Dividend Paid (in millions) |
|---|---|---|
| Three Months Ended July 31, 2024 | $0.236 | $68 |
| Nine Months Ended July 31, 2024 | $0.708 | $206 |
Conclusion on Mission Statement Alignment with Financial Performance
Agilent's mission statement focuses on delivering solutions that advance scientific discovery and health care. The company's financial performance reflects its commitment to innovation and customer support, illustrated by its revenue breakdown, net income growth, and ongoing investments in research and development.
How Agilent Technologies, Inc. (A) Works
Company Overview
Agilent Technologies, Inc. operates primarily in the life sciences, diagnostics, and applied markets, providing a range of instruments, consumables, software, and services. The company is segmented into three main business areas: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab.
Financial Performance
For the three months ended July 31, 2024, Agilent reported net revenues of $1,578 million, a decrease of 6% compared to the same period last year. For the nine months ended July 31, 2024, total net revenue was $4,809 million, reflecting a 7% decline year-over-year.
| Period | Net Revenue (in millions) | Year-over-Year Change |
|---|---|---|
| Three Months Ended July 31, 2024 | $1,578 | -6% |
| Nine Months Ended July 31, 2024 | $4,809 | -7% |
Revenue by Segment
Revenue performance varied across Agilent's segments:
| Segment | Three Months Ended July 31, 2024 (in millions) | Nine Months Ended July 31, 2024 (in millions) | Year-over-Year Change (3M) | Year-over-Year Change (9M) |
|---|---|---|---|---|
| Life Sciences and Applied Markets | $782 | $2,382 | -8% | -11% |
| Diagnostics and Genomics | $385 | $1,209 | -9% | -8% |
| Agilent CrossLab | $411 | $1,218 | +4% | +5% |
Operating Results
Agilent's gross margin for the three months ended July 31, 2024, was 52.1%, compared to 50.9% in the same period last year. The operating margin was reported at 34.0% for the same period, reflecting a slight increase from 32.7% year-over-year.
| Period | Gross Margin | Operating Margin |
|---|---|---|
| Three Months Ended July 31, 2024 | 52.1% | 34.0% |
| Three Months Ended July 31, 2023 | 50.9% | 32.7% |
Research and Development (R&D) Expenses
R&D expenses for the three months ended July 31, 2024, amounted to $127 million, an increase of 8% compared to the same period last year. For the nine months, R&D expenses were $368 million, unchanged from the previous year.
| Period | R&D Expenses (in millions) | Year-over-Year Change |
|---|---|---|
| Three Months Ended July 31, 2024 | $127 | +8% |
| Nine Months Ended July 31, 2024 | $368 | — |
Geographic Revenue Performance
Revenue performance varied across different regions:
| Region | Three Months Ended July 31, 2024 (in millions) | Nine Months Ended July 31, 2024 (in millions) | Year-over-Year Change (3M) | Year-over-Year Change (9M) |
|---|---|---|---|---|
| Americas | $1,578 | $4,809 | -10% | -10% |
| Europe | $1,578 | $4,809 | -7% | -7% |
| Asia Pacific | $1,578 | $4,809 | -13% | -13% |
Debt and Financial Obligations
As of July 31, 2024, Agilent had $420 million in borrowings outstanding under a term loan facility with a weighted average interest rate of 6.19%. Additionally, the company had $375 million in borrowings under its U.S. commercial paper program with a weighted average annual interest rate of 5.53%.
| Debt Type | Amount (in millions) | Interest Rate |
|---|---|---|
| Term Loan Facility | $420 | 6.19% |
| Commercial Paper Program | $375 | 5.53% |
Dividends
Agilent paid cash dividends of $0.236 per share during the three months ended July 31, 2024, totaling $68 million, and $0.708 per share for the nine months ended July 31, 2024, totaling $206 million.
| Period | Dividend per Share | Total Dividend Paid (in millions) |
|---|---|---|
| Three Months Ended July 31, 2024 | $0.236 | $68 |
| Nine Months Ended July 31, 2024 | $0.708 | $206 |
Outlook
Despite market challenges, Agilent anticipates long-term growth opportunities in life sciences and applied markets, with continued investments in expanding and improving its application and solutions portfolio.
How Agilent Technologies, Inc. (A) Makes Money
Revenue Streams
Agilent Technologies generates revenue through three primary business segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab. The following table summarizes the net revenue for each segment for the three and nine months ended July 31, 2024, compared to the same periods in 2023.
| Segment | Three Months Ended July 31, 2024 (in millions) | Three Months Ended July 31, 2023 (in millions) | Change (%) | Nine Months Ended July 31, 2024 (in millions) | Nine Months Ended July 31, 2023 (in millions) | Change (%) |
|---|---|---|---|---|---|---|
| Life Sciences and Applied Markets | $782 | $854 | (8%) | $2,382 | $2,671 | (11%) |
| Diagnostics and Genomics | $385 | $422 | (9%) | $1,209 | $1,310 | (8%) |
| Agilent CrossLab | $411 | $396 | 4% | $1,218 | $1,164 | 5% |
| Total Net Revenue | $1,578 | $1,672 | (6%) | $4,809 | $5,145 | (7%) |
Life Sciences and Applied Markets
This segment focuses on providing solutions that enable customers to analyze physical and biological properties of substances. Key product categories include liquid chromatography (LC) systems, mass spectrometry systems, and consumables. Revenue in this segment decreased by 8% for the three months and 11% for the nine months ended July 31, 2024, primarily due to capital expenditure pressures in the pharmaceutical market.
Diagnostics and Genomics
This segment includes products and services related to diagnostics and genomic applications. Revenue dropped by 9% for the three months and 8% for the nine months ended July 31, 2024. The decline is attributed to lower sales in cell analysis and nucleic acid solutions.
Agilent CrossLab
Agilent CrossLab provides extensive lab services, including repairs, maintenance, and compliance support. This segment saw revenue growth of 4% for the three months and 5% for the nine months ended July 31, 2024, indicating strong demand for contract repair and preventative maintenance services.
Geographical Revenue Distribution
Revenue is also affected by geographical distribution, which is summarized in the following table:
| Region | Three Months Ended July 31, 2024 (in millions) | Three Months Ended July 31, 2023 (in millions) | Change (%) | Nine Months Ended July 31, 2024 (in millions) | Nine Months Ended July 31, 2023 (in millions) | Change (%) |
|---|---|---|---|---|---|---|
| Americas | $735 | $819 | (10%) | $1,893 | $2,030 | (7%) |
| Europe | $605 | $649 | (7%) | $1,316 | $1,321 | (1%) |
| Asia Pacific | $238 | $381 | (38%) | $1,600 | $1,794 | (11%) |
Operating Results
Agilent's overall financial performance for the three and nine months ended July 31, 2024, is detailed in the following table:
| Metric | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2023 | Nine Months Ended July 31, 2024 | Nine Months Ended July 31, 2023 |
|---|---|---|---|---|
| Gross Margin | 54.2% | 39.3% | 54.5% | 49.6% |
| Operating Margin | 21.1% | 7.9% | 22.5% | 18.3% |
| Income from Operations (in millions) | $333 | $133 | $1,080 | $942 |
Net income for the three months ended July 31, 2024, was $282 million, compared to $111 million in the same period last year. For the nine months, net income was $938 million, compared to $765 million in 2023.
Research and Development
Research and development expenses for the three and nine months ended July 31, 2024, were $62 million and $192 million, respectively, which reflects a decrease of 3% compared to the same periods in 2023.
Dividends
During the three and nine months ended July 31, 2024, Agilent paid cash dividends of $0.236 per common share or $68 million and $0.708 per common share or $206 million, respectively.
Agilent Technologies, Inc. (A) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support