Agilent Technologies Reports Third Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-21
Agilent Technologies Reports Third Quarter 2024 Financial Results
Agilent Technologies Inc. (NYSE:A) today reported its financial results for the third quarter ended July 31, 2024.
Consolidated Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change Year-over-Year | Consensus Estimates | Change vs. Consensus |
|---|---|---|---|---|---|
| Total Revenue | $1.58 billion | $1.67 billion | -5.6% | $1.56 billion | +1.2% |
| GAAP Net Income | $282 million | $111 million | +154% | Not provided | Not applicable |
| GAAP EPS | $0.97 | $0.38 | +155% | Not provided | Not applicable |
| Non-GAAP Net Income | $385 million | $422 million | -8.8% | Not provided | Not applicable |
| Non-GAAP EPS | $1.32 | $1.43 | -8% | $1.26 | +4.8% |
Agilent Technologies delivered revenue of $1.58 billion, exceeding consensus estimates of $1.56 billion, despite a 5.6% year-over-year decrease. GAAP earnings per share surged by 155% to $0.97, while non-GAAP EPS was $1.32, surpassing the consensus estimate of $1.26. The company highlighted a significant improvement in GAAP net income, which reached $282 million.
Segment Revenue Performance
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change Year-over-Year | Operating Margin |
|---|---|---|---|---|
| Life Sciences and Applied Markets | $782 million | $850 million | -8% | 28.4% |
| Agilent CrossLab Group | $411 million | $395 million | +4% | 34.0% |
| Diagnostics and Genomics Group | $385 million | $423 million | -9% | 18.3% |
In terms of segment performance, the Life Sciences and Applied Markets Group (LSAG) reported a decline in revenue by 8% year-over-year, reflecting the challenging market conditions. The Agilent CrossLab Group (ACG) demonstrated resilience with a 4% revenue increase and a robust operating margin of 34.0%. Conversely, the Diagnostics and Genomics Group (DGG) experienced a 9% decrease in revenue.
Summary of Comments from Company Officers
Agilent President and CEO Padraig McDonnell commended the team's performance, stating, "The Agilent team executed well in Q3, delivering revenue and EPS above the top end of our guidance." McDonnell acknowledged the challenging market conditions but noted steady signs of improvement. The focus remains on investments in growth opportunities and strategic initiatives aimed at margin expansion and growth.
Forward Guidance
Agilent has provided updated estimates for the full-year 2024 and fourth-quarter outlook. The full-year revenue is now anticipated to range between $6.45 billion to $6.50 billion, with non-GAAP EPS estimated in the range of $5.21 to $5.25 per share. For the fourth quarter, revenue is expected to be between $1.641 billion to $1.691 billion, with non-GAAP EPS ranging from $1.38 to $1.42.
Stock Price Movement Post Earnings Release
Following the earnings release, Agilent’s stock saw a positive movement of 3.61%.
Agilent's revised revenue and EPS guidance underscore the company's ongoing efforts to navigate market challenges while seizing growth opportunities. The positive stock response reflects investor confidence in Agilent’s strategic direction and financial health.
