Agilent Technologies(A) - 2024 Q3 - Quarterly Results

Revenue Performance - Revenue for Q3 2024 was $1.58 billion, a decline of 5.6% reported and 4.4% core year-over-year[2] - Full-year revenue outlook revised to$ 6.450 billion to $6.500 billion, reflecting a decline of 5.6% to 4.9% reported[8] - Fourth-quarter revenue outlook expected between$ 1.641 billion and $1.691 billion, indicating a decline of 2.8% to an increase of 0.2% reported[8] - Overall GAAP revenue for Agilent decreased by 6% year-over-year, from$ 1,672 million in Q3'23 to $1,578 million in Q3'24[39] - Agilent's core non-GAAP revenue decreased by 5% year-over-year, from$ 1,670 million in Q3'23 to $1,578 million in Q3'24[40] Segment Performance - Life Sciences and Applied Markets Group (LSAG) reported Q3 revenue of$ 782 million, down 8% reported year-over-year[5] - Diagnostics and Genomics Group (DGG) reported Q3 revenue of $385 million, a decrease of 9% reported year-over-year[7] - Agilent CrossLab Group (ACG) reported Q3 revenue of$ 411 million, an increase of 4% reported year-over-year[6] - Life Sciences and Applied Markets Group revenue decreased by 8% year-over-year, from $854 million in Q3'23 to$ 782 million in Q3'24[34] - Diagnostics and Genomics Group revenue declined by 9% year-over-year, from $422 million in Q3'23 to$ 385 million in Q3'24[35] - Agilent CrossLab Group revenue increased by 4% year-over-year, from $396 million in Q3'23 to$ 411 million in Q3'24[36] - Non-GAAP revenue for Life Sciences and Applied Markets Group showed a constant currency decline of 8% year-over-year[40] - Non-GAAP revenue for Diagnostics and Genomics Group also reflected an 8% decline year-over-year[40] Income and Earnings - GAAP net income was $282 million, with earnings per share (EPS) of$ 0.97, up 155% from Q3 2023[2] - Non-GAAP net income was $385 million, with EPS of$ 1.32, down 8% from the same quarter last year[2] - Non-GAAP earnings guidance for fiscal year 2024 revised to a range of $5.21 to$ 5.25 per share[8] - Net income for the period reached $938 million, a 22.6% increase compared to$ 765 million for the same period in 2023[23] - The company incurred restructuring and related costs of $67 million during the period, contributing to a diluted EPS impact of$ 0.23[26] Cash Flow and Assets - Cash flows from operating activities amounted to $1,270 million, slightly up from$ 1,256 million year-over-year[23] - The company reported a cash balance of $1,782 million at the end of the period, up from$ 1,332 million a year earlier, marking a 33.6% increase[23] - Total assets increased to $10,996 million as of July 31, 2024, up from$ 10,763 million on October 31, 2023, representing a growth of 2.16%[22] Liabilities and Equity - Total current liabilities surged to $2,389 million, a significant increase from$ 1,603 million in the previous period, reflecting a rise of 48.9%[22] - Long-term debt decreased to $2,137 million from$ 2,735 million, indicating a reduction of 22%[22] - Employee compensation and benefits liabilities decreased to $309 million from$ 371 million, a decline of 16.7%[22] - The total stockholders' equity increased to $5,903 million from$ 5,845 million, reflecting a growth of 0.99%[22] Management Insights - The company continues to invest in promising growth opportunities and strategic transformation initiatives to drive margin expansion[1] - Agilent's management emphasizes the importance of non-GAAP measures for evaluating core business performance, which may differ from GAAP results[30] Margins - The gross margin for Life Sciences and Applied Markets Group was 60.2% in Q3'24, slightly up from 60.1% in Q3'23[34] - The operating margin for Diagnostics and Genomics Group decreased to 18.3% in Q3'24 from 22.7% in Q3'23[35]