Agilent Technologies(A) - 2024 Q4 - Annual Results

Financial Highlights Agilent reported solid Q4 and full fiscal year 2024 financial results, driven by strong execution and a new market-based strategy Q4 Fiscal Year 2024 Financial Highlights | Metric | Q4 2024 | Q4 2023 | Change | Core Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $1.70B | $1.69B | +0.8% | -0.3% | | GAAP Net Income | $351M | $475M | -26.1% | N/A | | GAAP EPS | $1.22 | $1.62 | -24.7% | N/A | | Non-GAAP Net Income | $418M | $404M | +3.5% | N/A | | Non-GAAP EPS | $1.46 | $1.38 | +5.8% | N/A | Full Fiscal Year 2024 Financial Highlights | Metric | FY 2024 | FY 2023 | Change | Core Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $6.51B | $6.83B | -4.7% | -4.7% | | GAAP Net Income | $1.289B | $1.240B | +4.0% | N/A | | GAAP EPS | $4.43 | $4.19 | +5.7% | N/A | | Non-GAAP Net Income | $1.539B | $1.609B | -4.3% | N/A | | Non-GAAP EPS | $5.29 | $5.44 | -2.8% | N/A | - CEO Padraig McDonnell stated that the team delivered solid Q4 results as markets continued to recover, emphasizing that the new market-based, customer-first strategy and organizational structure will position the company for more growth opportunities as the market improves[6] Segment Performance Agilent CrossLab Group (ACG) showed consistent growth in Q4 and full fiscal year 2024, while other segments experienced declines Life Sciences and Applied Markets Group (LSAG) Performance | Period | Revenue | Reported Change | Core Change | Operating Margin | | :--- | :--- | :--- | :--- | :--- | | Q4 2024 | $833M | -1% | -1% | 28.0% | | FY 2024 | $3.22B | -8% | -8% | 27.3% | Diagnostics and Genomics Group (DGG) Performance | Period | Revenue | Reported Change | Core Change | Operating Margin | | :--- | :--- | :--- | :--- | :--- | | Q4 2024 | $442M | -1% | -3% | 21.2% | | FY 2024 | $1.65B | -6% | -6% | 19.4% | Agilent CrossLab Group (ACG) Performance | Period | Revenue | Reported Change | Core Change | Operating Margin | | :--- | :--- | :--- | :--- | :--- | | Q4 2024 | $426M | +5% | +5% | 32.6% | | FY 2024 | $1.64B | +5% | +5% | 31.9% | Financial Outlook Agilent provided its fiscal year 2025 and first-quarter 2025 financial guidance, projecting modest revenue and EPS growth Fiscal Year 2025 Outlook | Metric | Guidance Range | | :--- | :--- | | Revenue | $6.790B - $6.870B | | Reported Revenue Growth | +4.3% to +5.5% | | Core Revenue Growth | +2.5% to +3.5% | | Non-GAAP EPS | $5.54 - $5.61 | First-Quarter Fiscal Year 2025 Outlook | Metric | Guidance Range | | :--- | :--- | | Revenue | $1.650B - $1.680B | | Reported Revenue Growth | -0.5% to +1.3% | | Core Revenue Growth | -2.0% to -0.2% | | Non-GAAP EPS | $1.25 - $1.28 | Corporate Developments Agilent announced a new organizational structure as part of its transformation to become more agile and customer-centric - The company announced a new organizational structure to become nimbler and more customer-centric[15] - More information about the company's evolved market-focused strategy and transformation will be shared at its Investor Day in New York City on Dec. 17, 2024[15] - Management will host a conference call for investors to discuss Q4 2024 financial results, with a replay available on the company's website for 90 days[14] Consolidated Financial Statements (Preliminary & Unaudited) Preliminary financial statements detail the company's balance sheet, income, and cash flow, alongside reconciliations for non-GAAP measures and core revenue Condensed Consolidated Statement of Operations The statement of operations details fiscal year 2024 revenue, income from operations, and GAAP net income, showing a slight increase in profitability despite lower revenue Fiscal Year Ended October 31 (In millions, except per share data) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Net revenue | $6,510 | $6,833 | | Income from operations | $1,488 | $1,350 | | Net income | $1,289 | $1,240 | | Diluted EPS | $4.43 | $4.19 | Condensed Consolidated Balance Sheet The balance sheet shows an increase in total assets and liabilities as of October 31, 2024, with stable stockholders' equity Balance Sheet Highlights as of October 31 (In millions) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Total current assets | $3,959 | $4,186 | | Total assets | $11,846 | $10,763 | | Total current liabilities | $1,895 | $1,603 | | Long-term debt | $3,345 | $2,735 | | Total liabilities | $5,948 | $4,918 | | Total stockholders' equity | $5,898 | $5,845 | Condensed Consolidated Statement of Cash Flows Cash flow statement indicates strong operating cash flow, increased investing activities due to acquisitions, and significant cash used in financing for repurchases and dividends Cash Flow Summary for Fiscal Year Ended October 31 (In millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,751 | $1,772 | | Net cash used in investing activities | $(1,258) | $(310) | | Net cash used in financing activities | $(752) | $(930) | | Net (decrease) in cash | $(261) | $537 | | Cash at end of period | $1,332 | $1,593 | Non-GAAP Reconciliations Non-GAAP reconciliations provide adjusted financial metrics, excluding specific items like intangible amortization and restructuring costs, to offer a clearer view of operational performance FY 2024 GAAP to Non-GAAP Reconciliation (In millions, except EPS) | Description | Net Income | Diluted EPS | | :--- | :--- | :--- | | GAAP | $1,289 | $4.43 | | Intangible amortization | $102 | $0.35 | | Restructuring and other related costs | $76 | $0.26 | | Other adjustments (net) | $72 | $0.25 | | Non-GAAP | $1,539 | $5.29 | - Non-GAAP adjustments primarily exclude charges for restructuring, asset impairments, intangible amortization, transformational initiatives, and acquisition/integration costs[19][34] Segment Revenue Reconciliation (Core) Segment revenue reconciliation adjusts reported revenue for currency and M&A impacts to present core growth, highlighting underlying business performance Q4 2024 Revenue Growth: Reported vs. Core | Segment | Reported Growth | Core Growth | | :--- | :--- | :--- | | LSAG | -1% | -1% | | DGG | -1% | -3% | | ACG | +5% | +5% | | Agilent Total | +1% | 0% | FY 2024 Revenue Growth: Reported vs. Core | Segment | Reported Growth | Core Growth | | :--- | :--- | :--- | | LSAG | -8% | -8% | | DGG | -6% | -6% | | ACG | +5% | +5% | | Agilent Total | -5% | -5% |