Summary of Agilent Technologies, Inc. Conference Call Company Overview - **Company**: Agilent Technologies, Inc. (NYSE:A) - **Conference Date**: January 9, 2024 - **Participants**: Mike McMullen (President & CEO), Bob McMahon (CFO), Rachel Vatnsdal (JPMorgan) Key Points Industry Context - 2023 was a challenging year for the life sciences tools and diagnostics industry, but Agilent views these challenges as transitory [2][33] - The company operates in a $65 billion total addressable market (TAM) with long-term growth prospects of 4% to 6% [9][10] Financial Performance - Agilent reported $6.8 billion in revenue for 2023, with a compound annual growth rate (CAGR) of 7% over four years [3] - Profitability is strong, with an operating margin of 27.4%, growing by an average of 100 basis points per year [3] - Earnings per share (EPS) have grown by an average of 15% annually over the last four years [3] Business Diversification - Agilent's business is diversified, with 40% in instrumentation and 60% in services, consumables, diagnostics, and software [3] - The largest end market is pharmaceuticals, accounting for 36% of total business, with double-digit growth over the last four years [4] Shareholder Value Creation - Agilent aims for core growth of 4% to 7% and operating margin expansion of 50 to 100 basis points per year [4][5] - The company has increased operating cash flow from over $500 million in 2015 to $1.8 billion in FY 2023, representing a CAGR of 17% [7] - Since 2015, Agilent has invested over $4.6 billion in growth initiatives, including $3 billion in M&A [7] Market Outlook - Agilent expects a return to growth in the pharma sector, which has been under pressure recently [41] - The company anticipates modest growth in chemical and advanced materials markets, with a focus on PFAS testing and advanced materials [22][24] Growth Drivers - Agilent is focusing on biopharma, with significant investments leading to a doubling of its biopharma business, now over 40% of total pharma revenue [17] - The company is also investing in cell analysis and diagnostics, with a $5 billion TAM expected to grow 5% to 7% [22] Geographic Expansion - Agilent has seen growth of 6% to 8% across five major geographies over the last four years [15] - The company is optimistic about long-term growth in China, despite short-term challenges [65] ESG and Sustainability - Agilent has set net-zero targets and has been recognized for its sustainability efforts, including a 33% reduction in carbon emissions since 2014 [26][27] M&A Strategy - Agilent is actively pursuing a "build-to-buy" growth strategy, with the potential for large acquisitions in the range of $4 billion to $5 billion [70] Guidance - For FY 2024, Agilent expects net revenue between $6.71 billion and $6.81 billion, with core revenue growth of 0.5% to 1% [29] Additional Insights - The company emphasizes a strong culture and teamwork as key to its success [28] - Agilent's CrossLab services business has grown significantly, contributing to a stable revenue stream [16][17] This summary encapsulates the key insights and financial metrics discussed during the conference call, highlighting Agilent's strategic focus, market positioning, and growth outlook.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Agilent Technologies Inc. (NYSE: A) today announced the company has again been included in the Dow Jones Sustainability World Index and the North America Index for its strong environmental, social, and governance (ESG) performance. “ It’s an honor to be named in the Dow Jones Sustainability Indices for a ninth consecutive year. I am particularly proud of our team’s progress in reducing emissions throughout our value chain and providing innovative solutions to help our ...

Core Viewpoint - Agilent Technologies has shown resilience despite short-term challenges, with a strong earnings report exceeding expectations and a notable stock performance, making it a compelling long-term investment opportunity [5][20]. Financial Performance - Q4 revenue was $1.69 billion, reflecting a 9.7% year-over-year decline, with an operating margin of 27.8% and earnings per share (EPS) of $1.38, surpassing analyst expectations of $1.34 [8][9]. - The Life Sciences and Applied Markets Group (LSAG) reported revenue of $928 million, an 18% core decline, attributed to cautious spending in the pharma sector [9][11]. - The company generated an operating cash flow of $516 million, exceeding 100% of adjusted net income, and announced a 4.9% dividend hike [12]. Market Segments - The pharma sector experienced a 14% decline, while biopharma outside China saw high single-digit growth [8][11]. - The Agilent CrossLab Group (ACG) achieved a revenue of $404 million, marking a 4% core increase, with double-digit growth in the Contract Services business [11]. - The Diagnostics and Genomics Group (DGG) generated revenue of $356 million, remaining flat on a core basis, with strong growth in Pathology offset by challenges in genomics [11]. Growth Outlook - Agilent anticipates a slow but steady recovery in fiscal year 2024, with projected revenue between $6.71 billion and $6.81 billion and non-GAAP EPS expected in the range of $5.44 to $5.55 [12]. - The company is optimistic about growth opportunities in China and emerging markets, aligning with local initiatives and focusing on the replacement cycle of small molecule instrumentation [13][14]. - Agilent's service business, represented by ACG, is expected to continue its double-digit growth, enhancing its comprehensive service offerings [15]. Valuation - Agilent is currently trading at a blended P/E ratio of 25.5x, with expectations of 10% annual EPS growth after 2024, indicating potential annual returns of 8% to 11% over the next few years [16].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________________ Form 10-K _____________________________________________________________ (MARK ONE) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the fiscal year ended October 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For transition period from to Commission File Number: 001-15405 _____ ...

Agilent Technologies, Inc. (NYSE:A) Evercore ISI HealthCONx Conference 2023 November 29, 2023 10:50 AM ET Company Participants Mike McMullen - President and Chief Executive Officer Bob McMahon - Chief Financial Officer Conference Call Participants Vijay Kumar - Evercore ISI Vijay Kumar Thanks everyone for joining us this morning. I’m Vijay Kumar. I cover Life Science and MedTech here at Evercore. Pleasure to have with us, Agilent Technologies this morning. From the company we have CEO, Mike McMullen; CFO, B ...

Agilent Technologies Q4’23 Financial Results Overview Safe Harbor These presentations contain forward-looking statements (including, without limitation, information, and future guidance on the company’s goals, priorities, revenue, revenue growth, earnings per share, operating margin, operating cash flow, capital expenditures, capital allocation, growth opportunities, new products and solutions, customer service and innovation plans, financial condition and considerations, impact of acquisitions, share repur ...

Agilent Technologies, Inc. (NYSE:A) Q4 2023 Earnings Conference Call November 20, 2023 4:30 PM ET Company Participants Parmeet Ahuja - IR Mike McMullen - President and CEO Robert McMahon - SVP and CFO Sam Raha - President, Agilent Diagnostics & Genomics Group Padraig McDonnell - President, Agilent CrossLab Group Phil Binns - President of the Agilent Life Sciences and Applied Markets Group Conference Call Participants Vijay Kumar - Evercore ISI Patrick Donnelly - Citigroup Inc. Matt Sykes - Goldman Sachs Ra ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended July 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For transition period from to Commission File Number: 001-15405 AGILENT TECHNOLOGIES, INC. (Exact Name of registrant as specified in its charter) Delaware 77-0518772 (State or other jurisd ...

Financial Data and Key Metrics Changes - Q3 revenue was $1.67 billion, a decline of 2% on a core basis compared to a tough compare of 13% growth in Q3 of the previous year [5][12] - Operating margins improved to 29.3%, up 180 basis points year-over-year [5][15] - Quarterly earnings per share were $1.43, reflecting a 7% increase and exceeding expectations [5][15] - Full year core growth expectations revised down to around 1%, from previous guidance [5][18] Business Line Data and Key Metrics Changes - Pharma business declined by 8%, with the China market specifically down 30% [6][12] - Life Science and Applied Markets Group revenues were $927 million, a decline of 9% against a tough compare of 18% growth [7][12] - Agilent CrossLab Group revenues increased by 11% to $396 million, with growth across all regions and end markets [9][12] - Diagnostics and Genomics Group revenues were $349 million, up 3%, driven by high single-digit growth in pathology [9][12] Market Data and Key Metrics Changes - The Chemical Advanced Materials market declined by 3%, contrasting with a 22% increase last year [7][12] - The Americas and the rest of Asia performed better than expected, while Europe met expectations [14][42] - China underperformed significantly, with a 17% decline in Q3, primarily in pharma [19][40] Company Strategy and Development Direction - The company is focusing on cost efficiencies and increasing productivity to drive future growth [11][22] - Continued investment in innovation, with new product launches and workflows introduced at industry conferences [9][22] - The decision to shut down the Resolution Bioscience business reflects a disciplined approach to portfolio management [17][52] Management Comments on Operating Environment and Future Outlook - Management views current challenges in China as transitory, with confidence in long-term growth prospects [5][26] - The company does not anticipate any improvement in the China market for the remainder of the year [5][18] - Management remains optimistic about the long-term growth potential in pharma and applied markets despite short-term challenges [21][22] Other Important Information - A $291 million pretax charge was taken in Q3 related to the shutdown of the Resolution Bioscience business [16][17] - Free cash flow forecast for the year increased to $1.2 billion, reflecting strong cash flow generation [16][17] Q&A Session Summary Question: Insights on the China market and its cyclical versus structural nature - Management indicated that the current challenges in China are macroeconomic rather than competitive, with strong market shares maintained [25][26] Question: Durability of growth in the Agilent CrossLab Group - Management expects high single-digit to low double-digit growth, with Q3 margins being higher than typical due to variable pay true-ups [27][28] Question: Visibility into cyclical areas of the Chemical Advanced Materials segment - Management noted mixed performance, with some weakness in chemicals due to macroeconomic concerns, while advanced materials remain stable [32][34] Question: Phasing in the China market and exit rates - Management confirmed a decline in July, leading to a 17% drop for the quarter, with expectations of continued weakness in Q4 [40][41] Question: Pricing trends and competition in China - Management reported positive pricing contributions globally, though some pressure is anticipated in China due to deflationary trends [67][68] Question: Recovery signs in pharma spending - Management has not observed signs of recovery in pharma spending, with expectations of stabilization rather than growth [75][76]

Agilent Technologies Q3’23 Financial Results Overview Safe Harbor These presentations contain forward-looking statements (including, without limitation, information, and future guidance on the company’s goals, priorities, revenue, revenue growth, earnings per share, operating margin, operating cash flow, capital expenditures, capital allocation, growth opportunities, new products and solutions, customer service and innovation plans, financial condition and considerations, impact of acquisitions, share repur ...