Agilent Technologies(US:A)2025-03-03 21:59Financial Performance - Net revenue for the three months ended January 31, 2025, was $1,681 million, representing a 1% increase compared to the same period last year[131]. - Net income for the three months ended January 31, 2025, was $318 million, down from $348 million in the same period last year[133]. - Cash provided by operations was $431 million for the three months ended January 31, 2025, compared to $485 million in the same period last year[133]. - Total net revenue for the three months ended January 31, 2025, was $1,681 million, representing a 1% increase compared to $1,658 million in the same period last year[150]. - Income from operations for the three months ended January 31, 2025, decreased by $8 million or 2% to $376 million, despite a revenue increase of $23 million[158]. - Income from operations for the three months ended January 31, 2025, increased by $3 million or 3% on a corresponding revenue increase of $27 million[177]. Revenue Segmentation - Revenue from the Life Sciences and Diagnostics Markets segment increased by 4% year-over-year, while the Applied Markets segment saw a decrease of 4%[131]. - Revenue in the Life Sciences and Diagnostics Markets segment increased by 4% to $647 million, while the Agilent CrossLab segment saw a 1% increase to $696 million; however, the Applied Markets segment experienced a 4% decline to $338 million[150][151][152]. - Revenue in the Americas increased by 10%, while Europe saw a 3% increase; however, revenue in Asia Pacific decreased by 5%[169]. - Services and other revenue increased by 7% year-over-year, driven by strong growth in contract repair and preventative maintenance services[149]. Cost and Expenses - The total gross margin for the three months ended January 31, 2025, decreased by 1 percentage point to 53.5% compared to 54.8% in the same period last year[153][154]. - Research and development expenses decreased by 12% to $113 million, while selling, general and administrative expenses increased by 3% to $410 million[153][155][156]. - Research and development expenses decreased by 7% to $26 million for the three months ended January 31, 2025, primarily due to lower salary expenses[185]. - Selling, general and administrative expenses increased by 3% to $143 million for the three months ended January 31, 2025, due to higher corporate infrastructure expenses[186]. - Operating margin for the three months ended January 31, 2025, decreased to 31.8%, down 1 percentage point from 32.4% in the same period last year[184]. Shareholder Returns - The company paid cash dividends of $0.248 per common share, totaling $71 million, during the three months ended January 31, 2025[134]. - The 2023 share repurchase program authorized the purchase of up to $2.0 billion of common stock, with $90 million spent to repurchase 649,857 shares in the three months ended January 31, 2025[136]. - The company repurchased and retired 649,857 shares for $90 million under the 2023 repurchase program during the three months ended January 31, 2025, with remaining authorization to repurchase approximately $284 million[206]. - Cash dividends paid during the three months ended January 31, 2025, were $0.248 per common share, totaling approximately $71 million, compared to $0.236 per share or $69 million in the same period of 2024[208]. Cash Flow and Investments - Net cash provided by operating activities was $431 million for the three months ended January 31, 2025, compared to $485 million for the same period in 2024[200]. - Net cash used in investing activities was $94 million for the three months ended January 31, 2025, compared to $95 million in the same period of 2024[203]. - Investments in property, plant and equipment were $97 million for the three months ended January 31, 2025, compared to $90 million in the same period of 2024, with total capital expenditures expected to be approximately $450 million for the current year[204]. - Net cash used in financing activities for the three months ended January 31, 2025, was $180 million, a decrease from $240 million in the same period of 2024[205]. Market Outlook and Strategy - The company anticipates a steady recovery in customer capital budgets and remains optimistic about the long-term health of key end markets[137]. - The company remains optimistic about long-term growth opportunities, particularly in the life sciences and diagnostics markets, and plans to continue investing in research and development[171]. - Restructuring plans are expected to result in approximately $100 million in annual cost savings across all business segments[141]. - The organizational structure was changed in November 2024 to support a market-focused strategy, resulting in a new segmentation of business units[165]. Foreign Currency Impact - Foreign currency movements negatively impacted revenue growth by 2 percentage points for the three months ended January 31, 2025[146]. - Approximately 47% of revenue was generated in U.S. dollars during the three months ended January 31, 2025, with an unfavorable impact on revenue growth of 2 percentage points due to foreign currency exchange rate changes[220]. - Agilent CrossLab segment revenue increased by 1% year-over-year, with a 2 percentage point unfavorable impact from foreign currency movements[179]. Other Financial Information - Other income for the three months ended January 31, 2025, was $4 million, which included a net gain of $1 million on equity securities[160]. - The effective tax rate for the three months ended January 31, 2025, was 13.4%, with an income tax expense of $49 million, compared to 13.6% and $55 million in the same period last year[162]. - As of January 31, 2025, the company had no borrowings outstanding under its $1.5 billion unsecured credit facility and $750 million incremental revolving credit facility[210]. - Under the U.S. commercial paper program, the company borrowed $301 million and repaid $331 million during the three months ended January 31, 2025, with $10 million outstanding as of January 31, 2025[213]. - The company had commitments for indirect material and services increased by $12 million to $148 million, while commitments to contract manufacturers and suppliers decreased by $38 million to $603 million[217]. - There were no changes in internal control over financial reporting during the quarter ended January 31, 2025, that materially affected the company's internal control[226].